Page 117 - Introduction to Business

CHAPTER 2 The Environment of Business 91

Portfolio Projects

Exploring Your Own Case in Point sider your company to be an MNE? If yes, what
was the chosen mode of foreign venture?
In this chapter we focused on the setting in which busi-
nesses operate. We found that business is global in
nature, and advances in information technology are Starting Your Own Business
making our world smaller all the time. Yet businesses
After reading this chapter, your business plan should
are heavily influenced by domestic economic policies
answer questions related to the global business envi-
as well. Answers to the following questions will enable
ronment within which your firm will operate.
you to understand the surroundings in which your
1. Where will your outputs be sold? Is your market
company operates.
domestic, regional, or international? Will sales of
1. What economic policy goals are most important
your output face overseas competition? If so, from
for your company’s successful operation?
which countries and why? How will NAFTA and
2. Does your company sell any of its goods and serv- developments in the European Union affect your
ices overseas? If yes, what is the percentage of business?
overseas sales, and to which countries are the
2. Will trade barriers impact your business? How?
products and services sold and why? Do any of
What is your strategy for handling such situations?
these overseas countries impose trade barriers on
3. What is the competitive advantage of your busi-
your company’s products? If yes, what types of
ness? Is this likely to diminish over time because of
trade barriers?
globalization and offshoring? Have you considered
3. If your company does business with foreign coun-
offshoring?
tries, what are the major currencies that it gets
4. What aspects of domestic economic policies will
involved with and what type of exchange rate sys-
likely have a negative effect on your business?
tem do those currencies follow?
What strategies do you have in place to overcome
4. What is the type of foreign market penetration
these challenges when they appear?
selected by your company? Why? Would you con-

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