Answer Happy

When a company is looking for ways to improve profitability and thereby increase returns on investment to its stockholders, the company will often seek new countries to do business. Assume that your company has decided to start business operations in one additional country but has not decided which country. The company is deciding between Country X and Country Y Setting up operations will cost about the same in either country. Below is a country comparison. In a few paragraphs, lay out the argument that you would present to the board of directors for which country you would recommend to expand operations. Make sure to include how you would propose to mitigate the risks associated with the country you choose. Country X Country Y $100M $100M Cost to set up operations Projected Sales Revenue (2 years) $300M $850M Corruption Low: some nepotism and tariffs on foreign businesses (favors native companies) High: bribery is endemic, sponsor fees required to secure permits, workers hired through an "agency" which pays their wages with little transparency