The Issues of Running a Business Essay

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Total Length: 684 words ( 2 double-spaced pages)

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Q1

Countries that are presently attractive for U.S. corporations seeking foreign direct investment opportunities include China, India and Africa (Peters, 2011; Gill, Biger, Tibrewala, 2010; Graham, Spalding, 2005). These countries are attractive because of their emerging economies and high population. However, they are not without their attendant risks. Geopolitical risks in China include contentions with the West over the South China seas, relations with North Korea and Russia, and the New Silk Road project. In India, there are risks associated with the political system there as well, especially with regard to the extent to which the current government wants to allow foreign investment. Africa is also geopolitically risky in certain countries, where governments are undergoing destabilization (for instance, in South Africa).

Q2

Yes, GE just got a new CEO—Jeff Immelt stepped down and was replaced by John Flannery. Immelt helped the company divest of its finance industry which almost tanked the company in 2008. Flannery now takes over to help guide GE towards more development of its core engineering business as well as its healthcare business. Flannery has a lot of experience in the firm, overseeing healthcare as well as deal-making in foreign countries. As GE looks to the developing world like the rest of the West, it will require a firm hand to ensure the corporation proceeds successfully.

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As Wild, Wild and Han (2010) point out, the world of international business is a challenging one that requires a great deal of foresight, forethought and ingenuity to be successful.

Q3

10 straight quarters of declining sales—yes, Macy’s faces much business risk (Brownfield, 2017). Amazon is destroying retail and Macy’s faces the bleak prospect of following in the footsteps of Sears, Circuit City and Best Buy as they all have and had to struggle with the new approach to shopping. Demand volatility for Macy’s is a factor, just as the Internet is changing the way that people look to buy goods and obtain items for themselves.

Q4

Bank of America is a commercial bank and an investment bank. It takes deposits and issues loans and it also sells securities and provides guidance to corporations doing mergers and acquisitions (Callard, 2017). Bank of America does it all and thus is a huge operator in the financial services industry, functioning on many levels to work both with governments and businesses as well as helping individuals obtain….....

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