you discussed Keith’s concerns with establishing Greenfield ventures in Bolivia and Peru, at the urging of the head of Zip 6’s Brazilian unit and you discussed some entry alternatives. In this Assignment, you are asked to assume the role of a Zip 6 Business Analyst preparing a report for Ravi and Keith outlining the possible economic and political risk factors involved in establishing plants within these two countries. For this Assignment, research the following web resources:
Look up Bolivia and Peru on the CIA Fact Book site and the Michigan State University globalEDGE site by placing the links below in your browser:
CIA Fact Book: https://www.cia.gov/library/publications/the world factbook/index.html
Michigan State University globalEDGE™ website: http://globaledge.msu.edu/Countries
Respond to the following checklist items:
- Analyze the possible political risks in building plants in each of these countries (Bolivia and Peru)
- Analyze the possible economic risks in building plants in each of these countries (Bolivia and Peru)
- Outline these risk factors for each country in your report
Political Risk Factors according to Hill, (2011) refers to “The likelihood that political forces [or the government] will cause drastic changes in a country’s business environment that will adversely affect…goals of a business enterprise” (p.82).
Economic Risk Factors according to Hill, (2011) refers to “The likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit or other goals of a particular business enterprise” (p. 83).
Hill, C.W. (2011). Global business today (7 ed.). New York, NY: McGraw Hill.