Reference no: EM132841173

Describe the characteristics, opportunities, and challenges of the global business environment

1. You own a company that employs about two hundred people in Maine to produce hockey sticks. Why might you decide to outsource your production to Indonesia? Would closing your plant and moving your operations overseas help or hurt the U.S. economy? Who would be hurt? Who would be helped? Now, armed with answers to these questions, ask yourself whether you would indeed move your facilities or continue making hockey sticks in Maine. Explain your decision.

2. There is a variety of strategies that a business can use in order to reach global markets. For each of the following businesses, which strategy would be appropriate? Once you have selected an appropriate strategy, provide one advantage and one disadvantage the business may encounter when employing the strategy.

• A manufacturer of high-tech drones used to map the surface of the planet Mercury
• A clothing company that specializes in designer clothing for children under the age of ten
• A doughnut shop that has locations in thirty-two states but now wants to take its "bake-and-take" doughnuts to the global market

3. You are the Supreme Leader of your nation and must decide whether to erect trade barriers to protect your most valuable national asset: "Cantgetitanywherebuthere-ium." Several other counties have found rich supplies of this formerly rare substance, and now you face fierce competition in the world markets. This could have devastating consequences for the economy of your nation and your position as Supreme Leader. The citizens are pushing for trade barriers in order to protect their jobs and their financial futures! The international community objects that placing tariffs, quotas, or any kind of import/export restrictions on "Cantgetitanywherebuthere-ium" is unacceptable protectionism. What do you do, why? Be specific, and weigh the pros and cons of various means of restricting trade and protecting your advantage.