Assignment: Economic Risk and Foreign Investment

Assessing the political, legal, and economic business environment is an important activity as the accurate evaluation of these factors can have an impact on business decisions and the resulting outcome. In this Assignment you have the opportunity to apply research into these areas to apply it to summarize a recommended course of action to management.

As owner of an American-based t-shirt distribution business, you have an opportunity to acquire a competing t-shirt manufacturing facility based in another country (use the country you chose for your Unit 5 journal research). The acquisition price is below book value. After completing some marketing research, you must make a recommendation to your management team in favor of acquisition or against acquisition based on your assessment of the political, legal, and economic climate in your chosen country. In this Assignment, you should use your research from your Unit 5 Journal entry to develop an informative essay addressing the checklist items below.

Checklist:

• Describe any political risks associated with this offer.

• Describe any economic risks associated with this offer.

• Summarize and explain your recommendation to management.

Respond in a minimum of a 350-word informative essay in APA format and citation style with a separate title and reference page.

Assignment: Impacts to the Profit and Loss Statement

Go to Tim's Coffee Shoppe and look in the back office. Inside the file drawer labeled "Business" is Tim's Coffee Shoppe Income Statement for the most recent year. This is the most recent record Tim has. This year, several large businesses are moving in around his coffee shop and he expects business to increase. Tim needs to create a pro forma profit and loss (income) statement for this year, and you need to help him.
View the rubric for the Assignment details. In a minimum of a 4-page paper in APA format and citation style which includes a title page and references page, please respond to the line items above and the two questions provided. Submit it to the Dropbox before the end of the unit.