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BUS 201 ECONOMIC FACTORS

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Write a REPORT on the topic detailed below: Analyze an emerging/developing economy and a developed economy as a possible site for a firm to establish a subsidiary. Your selection of economies is ‘Emerging/Developing’: Philippines, Argentina, Mexico (choose one from these three)' Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalize by establishing a subsidiary (office) in the host economy. Consider the following issues that would help you make such a business decision: In the context of political, legal, cultural and e...

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Question Preview:

Write a REPORT on the topic detailed below: Analyze an emerging/developing economy and a developed economy as a possible site for a firm to establish a subsidiary. Your selection of economies is ‘Emerging/Developing’: Philippines, Argentina, Mexico (choose one from these three)' Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalize by establishing a subsidiary (office) in the host economy. Consider the following issues that would help you make such a business decision: In the context of political, legal, cultural and economic factors, what are the advantages and disadvantages of investing in each economy?

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Solution Preview

Economic factors are the factors related to the market and the overall economy which may impact the investment decision of the investor. These factors include the cost of labor, interest rates, tax rates, transportation & communication, power & energy resources, per capital income among others.

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