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With the present U.S. economy in a weakened state, most of the companies are reluctant to implement any capital improvements or capital expenditures in fear of the economic uncertainty which exists that might negatively impact the cash flow of the organization. Evaluate the impact of this behavior on productivity, cost efficiency, diversification of assets or impact to future cash flows which might emerge if companies continue this mindset indicating the long-term risk to profitability. Give an instance or scenario to support your response. Analyze the challenges which companies face in entering global markets. Recognize the potential impact to capital budgets in making the decision to move to a global market.

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