Question

In: Accounting

Exercise 22.4 Sustainability – developing countries You are the accountant of a company that is considering...

Exercise 22.4 Sustainability – developing countries

You are the accountant of a company that is considering expanding its operations to a developing country. The CEO has asked for a report outlining what issues the company should consider from a sustainability perspective when making this decision. Outline some of the key issues to be included in the report.

Solutions

Expert Solution

Answer :

  1. The business case: This is a factor that is related with the business operations in the country. What are the opportunities in the organization? How are they offering the business and opportunity of success? These are some of the key components that are influencing the success of the business in the target market.
  2. Legal obligations in the market: The government obligations or demands from businesses is another element that will define the ease of doing business. If the environment of doing business is important in determining whether to enter the market or not.
  3. The culture; There are different cultures in the world. These cultures are influencing the success of businesses in the market. It is important to define how prevailing culture will then influence the success of business.

Stability of the country: The stability of a country will influence the success and performance of business. The stability of currencies are also influenced by the stability of the country economically and politically will then affect the success of the organization in the target market

Explanation :

The success of businesses is determined by the opportunities that are found in the market. This is based on the fact that the demand for goods and services in a target market offers a good case for business opportunities. When a firm is able to make more sales, then this is going to improve the business operations in the market.

Moreover, the business environment also plays a key role for business to thrive. An organization which seeks to meet the demands of their clients needs to consider the prevailing culture. This will help in serving clients better.

Another thing is the stability of the country. This will automatically affect the economy and ease of doing business in the market. Therefore, the firm must always seek for better ways to ensure that it is able to serve clients well and realize its long term goals.


Related Solutions

What are the roles of SUSTAINABILITY AND THE ROLE OF THE MANAGEMENT ACCOUNTANT?
What are the roles of SUSTAINABILITY AND THE ROLE OF THE MANAGEMENT ACCOUNTANT?
Why do you feel developing countries struggle with environmental pollution worse than developed countries?
Why do you feel developing countries struggle with environmental pollution worse than developed countries?
The AICPA has assembled a Sustainability Task Force that is in the process of developing a...
The AICPA has assembled a Sustainability Task Force that is in the process of developing a Sustainability Assurance Guide due to the increased expectations regarding the reporting of corporate social and environmental performance. For your review, below is the AICPA resource. Assume you are a member of this taskforce; discuss what types of assertions you would expect your client’s management to make regarding socially responsible goals. How do you think stakeholders will rely on the assurances that are provided by...
discuss microfinance activities in developing countries
discuss microfinance activities in developing countries
Research the top three countries with highest growth rate. Why do you think developing countries have...
Research the top three countries with highest growth rate. Why do you think developing countries have a higher growth rate compared to industrialized countries?
Busness Ethics in developing countries such as China and in developed countries such as America? give...
Busness Ethics in developing countries such as China and in developed countries such as America? give exampels about multinational corporotion in both countries snd how do they desl in their bussnisses with ethics ? (Commercial advertisements and community activities)
what are the importance of parasite infection in developing countries
what are the importance of parasite infection in developing countries
are equity funds targeted to firms in developing countries
are equity funds targeted to firms in developing countries
2) You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant,...
2) You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items: a. The balance sheet reports land at $100,000. Included in this amount is a property held for speculation at a cost of $30,000. b. Current liabilities include $50,000 for long-term debt that is due in three months. The company has received a suitable firm commitment to refinance the...
As the emerging markets in developing countries gain global influence and power, do you believe that...
As the emerging markets in developing countries gain global influence and power, do you believe that the current developed countries will be able to maintain their competitive edge? What do you think needs to be changed with the developed countries economic policies to maintain their current role or to become more competitive? Please provide references for the information provided.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT