Organizations face many challenges when considering expanding their business globally. Each country got its own economical and legal rules and regulations that a business needs to conform to. Not only do they need to consider the opportunity cost and benefits that may be comes with operating in an international market, they need to understand the risk as well. It is important for ABC Complete Kitchen Inc. executive team to assess and all economic and legal factors that can influence its new plant, then incorporate economic and legal considerations into its operations plan to avoid any risk of obtaining credit, reliable market conditions, or product liability issues.
In order for one to understand economics they need to know the
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When a person does something that benefits them, they are doing it in self-interest, when it benefits society it is a social interest. Sometimes intentionally or not, when people plan on doing something in self-interest they promote social-interest. For example, an individual wants a new coat. He/she uses their time and money to go to the store to purchase the coat. A person sales them the coat will earn a paycheck, the store you bought the coat from earns a profit. The choices that individual made not only benefit them but also others. There economic factors that influence how a company obtains credit, such a financial crisis and global slump.
Financial Crisis and Global Slump For decades production was up and the standard of living was high. However, due to 2009 recession, all of that changed. Company’s production decreased, people lost their employment, and means of support. Not only did production drop in the United States it dropped across the world. As a result of this, it caused the first “global slump” (Edition, 2011). It was the beginning of the worst recession since World War II. As noted by Anderson (2013) “in the recovery from… 2009 recession, unemployment…resistant to both aggressive fiscal policy and expansionary monetary policy…managers of private firms…rationally avoiding hiring workers in the years after