In: Finance
LP1 Assignment: Milestone 1: International Expansion
This assignment will assess competency
1. Build effective global and international linkages for multinational organizations.
Directions
The company you work for is expanding internationally in the near future. A team of employees, which you are a part, have been given the task of evaluating one developed (not the U.S.), one emerging and one developing country for possible expansion. You will pick three countries this week, using the Dow Jones Indexes, and begin the process of evaluation. Choose three countries in which you have an interest – do not focus on finding the best choice (remember there is an entire team doing the same process in other countries). There is every possibility that by the end of the process (i.e., the end of class) your country recommendations will be not chosen for expansion, and that is fine. We are completing our due diligence on all the choices at hand. This week you will look at the political, legal and technological ramifications of your three countries. You will write up, for each country, all the pros and cons of the choice of each country based on your readings of the first three chapters of your text, the CIA World Factbook and the AIB Global Edge, plus other research from other sources. The expectation would be for a minimum of two pages per country. You will follow APA (6th edition) formatting (no abstract is required for this milestone) with title and reference pages, indented paragraphs and a minimum of four APA formatted references and associated in-text citations. This information, and that of the following LPs, will become part of your final project artefact.
Build effective global and international linkages for multinational organizations
1. Emerging Country: India
Political ramifications |
Legal ramifications |
Technological ramifications |
· Reappointment of government under supervision of Mr. Narendra Modi( Indian Prime Minister) · Abolishing Article 370 and bill to bifurcate J&K into two Union Territories · Passing of contentious Citizen (Amendment) Bill giving eligibility for Indian Citizenship to illegal migrants (except Muslims) |
· Welcoming Liberalization, globalization and promoting foreign institutional investors · Strengthening the provisions of Foreign Exchange Management Act, Information Technology Act · Revamping of Companies Act · Introduction of GST norms under Indirect Taxations in 2017 · Demonetarization in 2016 · Section 377 of the Indian Penal Code giving recognition to same sex relationship · Issues relating to marital rape |
· Cloud Computing · PARAM - India’s first ever indigenous supercomputer was a major milestone in modern India’s technological journey. Working remotely · Mobile technology · Promoting imported technologies |
Pros |
Cons |
· Scope for sustainable business · Organized employability · Economical operational costs · Presence of a startup ecosystem · Business-friendly laws · |
· Unqualified or Underqualified Work Force · Corruption in the Government and the Judicial System · Lack of Awareness of the Cultural Difference · Resentment from Own Country |
2. Developing country: Saudi Arabia
Political ramifications |
Legal ramifications |
Technological ramifications |
· Rise of Crown Prince Mohammed bin Salman as de-facto ruler in 2017 · Liberalizing female driving was a bold step by the Saudi’ Prince |
· With Mohammad Bin Salman in 2017, has seen moves towards liberalizing some laws and diversifying the economy, accompanied by growing regional rivalry with Iran. · Drift in the focus of religious Police to regional Police |
· Vast growth in Cyber security businesses · Focus towards Merger and acquisitions outside local market (recent M&A deal for Saudi Telecom Company with Vodafone, Egypt) and various others · Focus towards IT businesses and processes in addition to the main line of business(i.e. oil) · |
Pros |
Cons |
· Ease of doing business · A shift away from nationalization to privatization · A reinvigorated political and cultural system · People · Security · Work and business opportunities · Accommodation and infrastructures |
· Women need permission from their husband or father is the owner of all her finances and controls her business · Women are not being able to drive is an inconvenience and requires the added expense of a driver and the government of Saudi Arabia has initiated only a limited number of programs for women entrepreneurship development · The lack of support from other women which is the biggest issue facing women in business especially the foreign female entrepreneurs in Saudi Arabia |
3. Developed Country: Australia
Political ramifications |
Legal ramifications |
Technological ramifications |
· Getting serious on domestic violence · In discussion to prosecute its climate policy at the next election since regulators and investors have recognized that climate change poses a very serious risk to the stability of the financial system. |
· Strengthening data protections norms in 2019 · Strengthening environment protection norms · Focus on liberalization and globalization policies |
· Ease out business registration process, fair trading etc. · Serious focus on Intellectual property rights breaches · Enactment of technology on marketing compliance · |
Pros |
Cons |
· Simple and flexible to operate · Opportunity for partners to bring different skills and expertise to the table · Less financial burden on the individual when starting out · Less paperwork to fill out when starting · No financial reporting obligations · Easy to include on your tax return · Individuals can claim business losses on their personal tax return · |
· Decisions are never made equally · Disagreements in management may occur · Difficult to add or remove partners · All profits must be split between both parties · Unlimited personal liability · Each partner is taxed at an individual tax rate · Partnerships can become complex when the number of partners gets higher · No access to government grants |