Prepare and submit a fully cited 2-page
outline for an argumentative essay based on the discussion titled “What Is the
Right Way to decide Where to do business?” POINT><COUNTERPOINT on page
188 of Introduction to Global Business – Gasper et al. (2017). Include APA
formatted cover page and references (these do not count as part of the 2-page
outline). Introduction should include a thesis. References should include 1
website and 3 or more peer-reviewed articles. All sources should
be published within the last 5 years.
What Is the Right Way to decide Where to do business?
When a company is looking for ways to improve profitability and thereby increase returns on investment to its stockholders, the company will often seek new places to do business, includ- ing countries where it is not currently doing business. Assume that the company has decided to start business operations in one additional country but has not decided which country. The company is deciding between Country A and Country F. Setting up operations will cost about the same in either country. Country A has a very low risk of corruption; its CPI is 8.5. On the other hand, Country F has a very high risk of corruption; its CPI is 1.4. Country A is a smaller market than Country F. Projected sales revenue in Country A is $1 billion. Projected sales rev- enue in Country F is $2 billion.
Point A business has an obligation to its owners to COuNteRPOINt While Country F offers the possibil-
make a profit and thereby provide the owners with a re- turn on their investment. Because Country F offers the potential of twice the revenues of Country A, the com- pany should set up operations in Country F.
ity of twice as much revenue as Country A, the risk of corruption in Country F is several times higher. If the company establishes business in Country F and later be- comes involved in corruption, the company could lose all its extra profits settling court cases and paying fines. The safer route would be to establish business in Coun- try A, where the risks of corruption are much lower.
When a company is looking for ways to improve profitability and thereby increase returns on investment to its stockholders, the company will often seek new places to do business, includ- ing countries where it is not currently doing business. Assume that the company has decided to start business operations in one additional country but has not decided which country. The company is deciding between Country A and Country F. Setting up operations will cost about the same in either country. Country A has a very low risk of corruption; its CPI is 8.5. On the other hand, Country F has a very high risk of corruption; its CPI is 1.4. Country A is a smaller market than Country F. Projected sales revenue in Country A is $1 billion. Projected sales rev- enue in Country F is $2 billion.
Point A business has an obligation to its owners to COuNteRPOINt While Country F offers the possibil-
make a profit and thereby provide the owners with a re- turn on their investment. Because Country F offers the potential of twice the revenues of Country A, the com- pany should set up operations in Country F.
ity of twice as much revenue as Country A, the risk of corruption in Country F is several times higher. If the company establishes business in Country F and later be- comes involved in corruption, the company could lose all its extra profits settling court cases and paying fines. The safer route would be to establish business in Coun- try A, where the risks of corruption are much lower.
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What Is the Right Way to decide Where to do business?