International Investment & Economic Development 2,Supposed that you have a business selling layer cakes (“kek lapis’)...

International Investment & Economic Development

2,Supposed that you have a business selling layer cakes (“kek lapis’) in Kuching and you are considering expend your business in a neighbouring country. Select a country of your choice. Briefly explain the reason for your choice of country and explain the possible risk facing you. ((2+4) marks)

Explain using Michael Porter’s diamond model, how the model is applied to your business plan in Question 2.

Expert Solution

Kuching is in Malaysia ans Malaysia is called the economic miracle of South East Asia. Now if I want to expand my business to a neighbouring country, then my first option would be Singapore.

Singapore is a financial hub which attracts the entrepreneurs. According to research, I found that the economy of Singapore is the most stable one and has no foreign debt of its own along with high government income causing an overall positive surplus. It is one of the best places preferred by entrepreneurs as it has a wide and flexible market that helps the business grow. The economy is potential with all opportunities and innovations.

But before making any major business decision, it is very essential to study the risks related to this decision. There is always a risk of market adaption. Although the area is highly business friendly, it has its risk of whether it will sustain in the high competition in market. A good amount of time and efforts must be invested along with money to make the product popular.

Then there is also the financial risk with any business decision. Enough fund must be there to face any internal or external risks. Though the business is profitable in Malaysia, there is always a chance of facing loss if the business is not accepted by the local people there.

Thus, sufficient surplus funds is necessary to overcome the risks and with more marketing, the product can be made better than the competitors. The product related risk is also there. There is a large competitive market in Singapore. To make our product better than the existing products in the market is sure a risk. Other than that, I must have good knowledge about the country's government and laws for smooth expansion.

The basic idea of Micheal Porter's diamond model is,

Michael Porter’s diamond model factors for your understanding are,

Rahul Sunny answered 2 years ago

International investment and economic development Part B. Short Answer Questions &n

International investment and economic development Part B. Short Answer Questions (Total: 15 marks) The number of families living in poverty in Malaysia and other neighbouring countries tend to live in the rural areas. What are the possible reasons for poverty in the rural areas? Give three possible reasons.

1) describe the concept of development economic and explain why you have to study development economic......

1) describe the concept of development economic and explain why you have to study development economic... 2) describe the structural change model and the big push model 3) review the concept of income inequality and some application of income and sustainable development, relationship between health and education

the following statement : International business and globalisation have changed the financial and economic climate of...

the following statement : International business and globalisation have changed the financial and economic climate of the world into a centralised marketplace that allows access to all global stakeholders. It provided a pool of products and services, previously not available to all global customers or consumers, with the touch of a button. It allowed governments to engage on a regular basis in terms of trade and trade-related issues and to form bilateral trade agreements in the interest of all stakeholders....

You have decided to go into the business of selling Motorcycles. You have incorporated your business...

You have decided to go into the business of selling Motorcycles. You have incorporated your business under the name of Miller Corporation On January 1, 20X1, you begin by depositing $50,000 cash in the new corporate bank account ? $30,000 of the money is yours and $20,000 is borrowed from your Uncle Mike. For the $30,000, which is yours, you (as Miller Corporation) issue yourself 300 shares of common stock. For the $20,000 borrowed from your uncle, you sign a...

A ) Suppose you are working as an economic consultant and you are supposed to explain...

A ) Suppose you are working as an economic consultant and you are supposed to explain the consequences of the following cases to your clients. Answer each part separately. Suppose due to a war in a neighbouring country, the country received refugees which increased the labour force. Also, there is a huge reduction in global oil prices. By using the Aggregate Supply curve, show the possible effects of these two changes on the price level and aggregate output in the...

International Codes: •The best starting point in the further development of standards for international business is...

International Codes: •The best starting point in the further development of standards for international business is self-regulation by business within the guidelines and standards that already exist. •The UN Global Compact with business was proposed by the UN secretary-general in January 1999. •The Compact challenges business to work with other companies, UN agencies, and nongovernmental organizations (NGOs) to support and implement ten basic principles stated in the Compact. • The basic principles deal with respecting human rights, labor standards, protecting...

Suppose you are working as an economic consultant and you are supposed to explain the consequences...

Suppose you are working as an economic consultant and you are supposed to explain the consequences of the following cases to your clients. Answer each part separately. a) (3 pts) Suppose due to a war in a neighbouring country, the country received refugees which increased the labour force. Also, there is a huge reduction in global oil prices. By using the Aggregate Supply curve, show the possible effects of these two changes on the price level and aggregate output in...

Business Funding Question. Solving a problem You are supposed to negotiate 2 bank credits: - one...

Business Funding Question. Solving a problem You are supposed to negotiate 2 bank credits: - one for intermediate trade with the USA (Import of iPhones 7) and - second – for the construction of the iPhone plant in Rome. Suggest your terms and conditions: (sum, currency, duration, interest rate, procedure of drawing and reimbursement, collateral – if any etc.) Required approximately 1 page in word.

5. You have a business you are considering selling. There are several ways to determine the...

5. You have a business you are considering selling. There are several ways to determine the firms worth. Based on the following data, which method would merit you the most for your business. 2016 annual profits were $1,500,000 Your current stock is 35.00 per share There are 35,000 outstanding shares of stock. Your stock has earned $12 this past year, and Average net income over five years $600,000 Consider in this calculation the Price/Ratio Method, outstanding share method, and the...

1) You have a business you are considering selling. There are several ways to determine the...

1) You have a business you are considering selling. There are several ways to determine the firm’s worth. Based on the following data, which method would merit you the most for your business? •2016 annual profits were $500,000 •Your current stock is 25.00 per share •There are 20,400 outstanding shares of stock. •Your stock as earned $5 this past year, and •Average net income over five years $95,000 Consider in this calculation the Price/Ratio Method, outstanding share method, and the...

Question