Reference no: EM132586433

Economics for Business Assignment -

SmartSport is an Italian company producing and selling sneakers and sportswear. The CEO, Italo Colantone, is currently considering an expansion of the company's activities in India. The business plan includes the establishment of a new production plant in Vadodara, the opening of single-brand stores in the major Indian cities, as well as the set-up of an extended distribution network through agreements with Indian retailers. For production activities in India, SmartSport is planning to import intermediate inputs from the US, Italy, and China. The final goods produced in India will also be exported to other Asian countries. That is, India will serve as a production hub for the Asian market at large.

Italo Colantone is looking for the advice of brilliant Indian managers on his plan. Considering the macroeconomic context of India, you should help him identify --besides the strengths-- the potential risk factors and weaknesses of his plan over the next 5 years. In particular, you are required to prepare a presentation addressing what you think are the most relevant issues. To fulfil this task, consider the lecture material as well as the readings discussed in class, and clearly document and motivate your points based on data/facts. You may want to consider factors such as: GDP growth rate; exposure of the Indian economy to changes in US monetary policy; INR interest rates and exchange rates; regulatory environment; etc.

As Italo Colantone is a busy CEO, the maximum space allowed for your assignment is 3 slides (excluding cover). You are free to add to the slide set additional Tables / Charts with relevant data motivating your key points.