Analyse Chile an emerging/developing economy and Canada a developed economy as a possible site for a firm to establish a subsidiary.

Description

Weight: 25%

Task Overview: Analyse Chile an emerging/developing economy and Canada a developed economy as a possible site for a firm to establish a subsidiary.

1. Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalise by establishing a subsidiary (office) in the host economy. Consider the economic factors that would help you make such a business decision.

2. In the context of economic factors, what are the advantages and disadvantages of investing in each economy?

The report should be a balanced consideration of the potential positive and negative aspects of each economy. Consider the opportunities and the risks for each economy. It should be a balanced consideration of the overall prospects for successful investment there. Finally, you should conclude as to which economy will be the host of your investment – your final decision/recommendation must be supported and justified.

4. Analysis

This section will cover the following sub-sections:

Economic factors

• Outline the advantages and disadvantages of each economy

• Consider drawing on (but do not limit yourself to) elements discussed in lectures and from your text.

5. Recommendations

• Identify the choice of economy for strategic investment

• Justify your reasoning drawing on and expanding on relevant sections from Part 4.

o Make sure that you elaborate on key arguments from Part 4 (do not repeat arguments from Part 4, expand on them)

o Ensure that your reasoning is internally consistent

o Consider short term and long-term goals of the investment

References (not part of word count)

List all of the references referred to in the report. The minimum number of references is 8. Use the Harvard system of referencing.

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