Give response to the opinion below, supporting info do you agree or disagree with points made? Managers

Fantastic news! We've Found the answer you've been seeking!

Question:

Give response to the opinion below, supporting info do you agree or disagree with points made?

Managers should pay attention to the underground economy and the impacts it has on the economy. First, one must determine the size of the underground economy in the country. Some initial markers to look for through assessment are: if there is higher taxation, the government has a lot of red tape, the culture is collectivist and accepts social inequality as a norm. Research has shown that these factors all indicate a significant underground economy. A good rule of thumb is the greater these factors the larger the underground economy. Second, one cannot be expected to uncover all of these factors on their own, so utilizing public data and paying for private data is a must in order to make a well-educated decision. Lastly, each country and analyst will use various methods to collect economic data. One should also be versed in the limits of the data and account for gaps with other data or reveal it in your final assessment of a market's attractiveness (Geringer, 2023). A well-rounded risk analysis and/or SWOT analysis would be of significant value during this assessment.

As a company and manager, I would also concern myself with the ethics of the decision. For example, if the company is entering into a market known to perpetuate social inequality, will we be willing to participate in this inequality as well? What will investors and consumers at home say if they discovered this? There are many ethical components to a decision to enter a new market. Another example would be the percentage of informal employment in a market. Does this perpetuate the economic gap or help it? What policies are in place that prevent or encourage our participation in informal employment if we did enter this market? Informal employment has been found more effective in short-term employment, but policies lack the backing to make the efficiency have long-term sustainability (Gulzar et al., 2010). All of these are additional components a manager must pay heed to when entering a new market.