Reference no: EM133265187

Question: Respond to your fellow students' posts in a substantive manner and provide information or concepts that they may not have considered. (Discussion post is below to respond to).

Select a country to invest in for one year. Describe why you chose that country and your expected yield for the next year.

As a cash manager working for Tesla Motors Inc., an electric car multinational corporation in the United States, one of my major responsibilities is to manage the company's investments. Seeing that this is a relatively new automobile firm, we are looking to venture into a new international market, with the intent to enhance brand awareness, and in so doing, increase our sales figures. In the spirit of expanding our operations into new economies; we are currently working on modalities of venturing into the Australian market.

Being the company's cash manager, I will be spearheading this expansion endeavor, and the first order of business will be describing the rationale for choosing this particular market. In this respect, Australia is an ideal region to expand to because the nation boasts a relatively healthy economy. According to the 2020 global economic outlook, Australia is a wealthy underpopulated country with an annual gross domestic product of more than $1.3 trillion, and a GDP per capita of close to $52,000 (Australia Economic Snapshot - OECD, 2021). This is important as it demonstrates that the country is developed, and most importantly, a majority of the people in this region have enough disposable income to afford Tesla Motor Inc.'s cars.

The second reason why the Australian market is ideal for expansion is that it has robust ties with Asian nations, an important point since most of the components used in manufacturing electric cars are sourced from Asian countries. Other factors that make Australia an ideal expansion market for Tesla Motors Inc. include; it has a skilled workforce, the government offers an array of investment-friendly incentives and the fact that there is political stability (English, 2020). Overall, we are projecting that the company will manufacture and sell 10,000 electric cars in the first year of operation.