One of the UK divisions of Global Enterprises plc wishes to set up a new manufacturing plant in Indonesia, because this would give it an important foothold in one of the fast growing parts of the world market, and would to a large extent deny this market to its main world competitors. The investment would amount to some £60m, of which the process plant would represent £40m.

The total effort of studying this proposal will be considerable and you, as treasurer, are asked to write a memorandum outlining the issues that you regard as critical to the decision to invest, other than purely commercial ones about product costs, markets and prices, and competition.