ECON310-1603B-08
Instructor: Janet Hunter
Unit 1- Macro and Microeconomic Concepts in a Global Context
Amanda Kranning
August 17, 2016
Part 1
With the development of a 5-year strategic growth plan for our growing company specialized in the production of semiconductors for the use of many technological equipment, many concerns arose to the factors that would come into play. We explored the following questions and have concluded the following:
• How would international expansion affect your business?
When entering into globalization, it is important to take in the variances that may arise in different cultures. The company would need to be aware of the logistic regulations, legalities, fluctuations in exchange rates, understanding market preferences, …show more content…
Businesses that operate on a worldwide scale can multiply their production and increase profits by offering their products to international consumers. Likewise, global expansion is a great way of gaining expertise in overseas production processes for an advantage. (Benefits Of, 2016)
Risks that may be encountered will derive from the country’s financial system itself. Is the country stable? Is there high unemployment and inflation? Alternatively, is there rapid growth of output per worker creating low inflation/low unemployment? Is the economy in or heading for a recession? Even worse, could a possible depression occur? (Colorado Technical University, 2013)
Disadvantages can come in many forms not limited to just the countries tax added to your product when sold but also the tariffs that may be required for the importation of goods. Another disadvantage can come from the currency exchange rate and what it may cost in the United States does not necessarily hold up in another country. Additionally, it is important to consider the technological and infrastructure development the country is in. Will it be able to withstand an influx of merchandise through transportation, business management, and retail? (Colorado Technical University, 2013)
• Do you think it is worth …show more content…
(2013). ECON310: Phase 1 activity: FAQ: Exploring Globalization [M.U.S.E.]. Retrieved from Colorado Technical University Virtual Campus, ECON310 -1603B -08: https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=5310761&aid=5310783
Colorado Technical University. (2013). ECON310: Phase 1 activity: National Output & National Income [M.U.S.E.]. Retrieved from Colorado Technical University Virtual Campus, ECON310 -1603B -08: https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=5310761&aid=5310762
The International Entrepreneur. (2016). The International Entrepreneur – How International Expansion Affects the Rest of the Company | The InternationalEntrepreneur. Retrieved from http://www.the-international-entrepreneur.com/the-international-entrepreneur-how-international-expansion-affects-the-rest-of-the-company/
Investopedia, LLC. (2016). Inelastic Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/e/inelastic.asp#ixzz4Hdj4Gxsr
University of Colorado Boulder. (n.d.). CCEE Economics - Unit 8 Main. Retrieved from http://www.colorado.edu/Economics/courses/econ2020/Unit8/Unit8-main.html
Wikibooks. (2015, February 14). IB Economics/Microeconomics/Markets - Wikibooks, open books for an open world. Retrieved August 15, 2016, from
Instructor: Janet Hunter
Unit 1- Macro and Microeconomic Concepts in a Global Context
Amanda Kranning
August 17, 2016
Part 1
With the development of a 5-year strategic growth plan for our growing company specialized in the production of semiconductors for the use of many technological equipment, many concerns arose to the factors that would come into play. We explored the following questions and have concluded the following:
• How would international expansion affect your business?
When entering into globalization, it is important to take in the variances that may arise in different cultures. The company would need to be aware of the logistic regulations, legalities, fluctuations in exchange rates, understanding market preferences, …show more content…
Businesses that operate on a worldwide scale can multiply their production and increase profits by offering their products to international consumers. Likewise, global expansion is a great way of gaining expertise in overseas production processes for an advantage. (Benefits Of, 2016)
Risks that may be encountered will derive from the country’s financial system itself. Is the country stable? Is there high unemployment and inflation? Alternatively, is there rapid growth of output per worker creating low inflation/low unemployment? Is the economy in or heading for a recession? Even worse, could a possible depression occur? (Colorado Technical University, 2013)
Disadvantages can come in many forms not limited to just the countries tax added to your product when sold but also the tariffs that may be required for the importation of goods. Another disadvantage can come from the currency exchange rate and what it may cost in the United States does not necessarily hold up in another country. Additionally, it is important to consider the technological and infrastructure development the country is in. Will it be able to withstand an influx of merchandise through transportation, business management, and retail? (Colorado Technical University, 2013)
• Do you think it is worth …show more content…
(2013). ECON310: Phase 1 activity: FAQ: Exploring Globalization [M.U.S.E.]. Retrieved from Colorado Technical University Virtual Campus, ECON310 -1603B -08: https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=5310761&aid=5310783
Colorado Technical University. (2013). ECON310: Phase 1 activity: National Output & National Income [M.U.S.E.]. Retrieved from Colorado Technical University Virtual Campus, ECON310 -1603B -08: https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID=5310761&aid=5310762
The International Entrepreneur. (2016). The International Entrepreneur – How International Expansion Affects the Rest of the Company | The InternationalEntrepreneur. Retrieved from http://www.the-international-entrepreneur.com/the-international-entrepreneur-how-international-expansion-affects-the-rest-of-the-company/
Investopedia, LLC. (2016). Inelastic Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/e/inelastic.asp#ixzz4Hdj4Gxsr
University of Colorado Boulder. (n.d.). CCEE Economics - Unit 8 Main. Retrieved from http://www.colorado.edu/Economics/courses/econ2020/Unit8/Unit8-main.html
Wikibooks. (2015, February 14). IB Economics/Microeconomics/Markets - Wikibooks, open books for an open world. Retrieved August 15, 2016, from