Question: 1. Northern Steel Corporation had suffered a decrease in revenues brought about by the Govid-19 Global Pandemic. With many factories closing operations due to the
1. Northern Steel Corporation had suffered a decrease in revenues brought about by the Govid-19 Global Pandemic. With many factories closing operations due to the recent pandemic demand for steel went down. Now, with the pandemic slowly dissipating and the global economy also slowly going back to normalcy, global demand for steel is slowly growing.
Recently, there has been a surge in the demand for steel products at the Northern Steel Corporation. This is a blessing for the company as it badly needs orders to sustain its existence and profitability. However currently, even if it desires to exploit such opportunity, the company cannot sustain the high demand for its products due to LACK OF CAPITALIZATION. The company's Board of Directors have decided to issue Long Term Bonds to secure needed funds but it does not know who would be interested to acquire them. The President of this company approached you for your assistance. If you are to recommend that the company secure its needed funds from sources in the Global Capital Market, what will you say to convince him?
2. Company A is one of the fast growing candy manufacturing companies in the US. It is one of the youngest companies in the US as it has been operating for almost 3 years already. It also has a popular following overseas and has been slowly penetrating the international market recently.
Just last month, the company's owners have expressed happiness and concern over the increasing popularity of its products overseas. Happy? The owners are glad about the growing sales potentials overseas. Concerned? They realized that their production facilities in the US may not be able to sustain future high market demand overseas. They are even considering the idea of opening production and distribution operations overseas to accommodate the future growth of the demand for their products in the international market.
One of the popular practices of this company is to maintain the quality and variety of its products in order to make it different from other companies in the industry. It will never change the ingredients for its products nor the variety of its products. However, the candy industry has been surviving mostly by adopting to the demands of the customers. Many industry players survived by making necessary changes in the products and product lines due to market pressures as well as pressures from the state. If Company A plans to operate abroad, it also has to consider that its products may not always be appreciated by everybody due to reasons such as health as well as cultural concerns.
If you were to recommend that the company expand its operations abroad, what do you think is the best international business strategy (Multi-domestic Strategy, Global Strategy, Transnational Strategy; or the International Strategies) for Company A?
3. Company A is one of the fast growing candy manufacturing companies in the US. It is one of the youngest companies in the US as it has been operating for almost 3 years already. It also has a popular following overseas and has been slowly penetrating the international market recently.
Just last month, the company's owners have expressed happiness and concern over the increasing popularity of its products overseas. Happy? The owners are glad about the growing sales potentials overseas. Concerned? They realized that their production facilities in the US may not be able to sustain future high market demand overseas. They are even considering the idea of opening production and distribution operations overseas to accommodate the future growth of the demand for their products in the international market.
One of the popular practices of this company is to maintain the quality and variety of its products in order to make it different from other companies in the industry. It will never change the ingredients for its products nor the variety of its products. However, the candy industry has been surviving mostly by adopting to the demands of the customers. Many industry players survived by making necessary changes in the products and product lines due to market pressures as well as pressures from the state. If Company A plans to operate abroad, it also has to consider that its products may not always be appreciated by everybody due to reasons such as health as well as cultural concerns.
If you were to recommend that the company expand its operations abroad, what do you think is the best international business strategy (Multi-domestic Strategy, Global Strategy, Transnational Strategy; or the International Strategies) for Company A?
4. Country A purchased 100,000 sacks of Raw Material 1 to Country B. Country A is to pay Country B with 100,000 sacks of Raw Material 2 to B plus 10,000 sacks of Raw Material 3 as a sign of thanks for the sale. Country B is also producing Raw Material 3 and production of such is equal to demand. Many of Country B's Ministers are recommending increase in the production of Raw Material 3 as demand is erratic and at times fluctuates. The President of Country B decided not to increase production of Raw Material 3 and focus on producing Raw material 1 where the international demand and price is increasing.
Last month, Country C is selling Country B a large volume of production equipment that can be used to produce more of Raw material 3 but it was originally purchased to increase Raw material 1. No final trade agreement between Country A and C has been made regarding these items.
If you were the President of Country B, what trade agreement will you enter with Country C. (Please specify how Country C is going to be paid under your proposed deal.)
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