In: Accounting
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.
Answer :
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.