Feasibility of the Company Making an Investment in A New Product.edited

docx

School

Maseno University *

*We aren’t endorsed by this school

Course

AND H

Subject

Economics

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by JudgeTeam2884

1 Feasibility of the Company Making an Investment in A New Product Name Institution Affiliation Course Professor Date

2 Feasibility of the Company Making an Investment in A New Product In the ever-evolving realm of international commerce, organizations often encounter the pivotal choice of allocating resources toward developing novel product portfolios, either inside their own country or in foreign markets. This study aims to delineate the primary qualitative and quantitative criteria that must be taken into account when assessing the viability of investing in a novel product line inside the United States as opposed to a foreign nation. Considering both possibilities presents distinct prospects and obstacles, necessitating a thorough assessment to arrive at a well-informed choice. I. Qualitative factors A. Marketing potential and demands 1. Features of the American market  Examine the domestic market's dimensions (size, growth rate, and competitiveness) in detail.  Consider what customers want, what the market is doing, and how you might improve your offering. 2. Foreign Market Considerations  Consider the prospects for developing the overseas market.  Analyze cultural norms, consumer patterns, and the legal framework. B. Regulatory and Political Environment 1. U.S. regulations  Investigate the current certification and standardization processes for products.  Consider how future changes in legislation would affect the range of products.

3 2. Overseas regulations  Get familiar with the other country's legal and commerce requirements and rules.  Evaluate the possible dangers and the ease of compliance with new regulations. C. Economic factors 1. U.S. economic stability  Look at the gross domestic product growth, inflation, and the jobless rate.  Assess the viability of the current economic climate. 2. Foreign Economic Conditions  Examine the foreign country's economy, exchange rates, and currency concerns.  Consider how inflation and political stability in the area could affect your investing decisions. II. Quantitative Factors A. Cost Analysis 1. U.S. production cost  Determine the expenses associated with production, labor, and operations inside the United States.  Assess the cost competitiveness of prospective international sites. 2. Foreign Production Costs  Consider the price of labor, materials, and transportation when estimating manufacturing costs in the international market.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

4  Take into account any possible cost benefits or drawbacks that may result from the location of the activity. B. Revenue Projection 1. U.S Market Potential  Based on market research findings, make projections about prospective sales and revenue in the domestic market.  Price strategy, market penetration, and expected demand should all be considered. 2. Foreign Market Potential  Forecast overseas product sales and earnings, considering the potential for expansion in the market and any obstacles to entrance.  Consider possible issues with translation, localization, and dissemination. C. Risk Assessment 1. U.S. domestic risks  Assess the potential drawbacks of focusing primarily on the American market, such as the saturation of the local market and the prevalence of domestic competitors.  Analyze the possibility of spreading your money throughout the world by investing abroad. 2. Foreign Investment Risks  Consider the potential legal, economic, and political consequences of investing abroad.

5  Consider potential issues with money transfers, international politics, and IP protection. Differences between investing in the U.S. and a foreign country Market analysis The success of both local and international investments depends on a thorough understanding of market dynamics and consumer preferences. It is easier to fulfill consumer demand if the product line is tailored to the target market's wants, requirements, and buying habits. Culture shock, language difficulties, and the requirement for localization all add layers of difficulty to any discussion about international investment (Janský, 2019). In a foreign market, consumer habits, tastes, and even product names might differ from those in the United States. Product, marketing, and communication elements are localized to better connect with consumers in the target market. Economic Factors Regardless of the location of an investment, economic stability and development potential are crucial factors to consider. The state of the economy may be gauged in either situation by looking at the pace of gross domestic product expansion, the rate of inflation, and the unemployment rate. Investing in a foreign country increases the difficulty level due to the risks associated with fluctuations in the value of the currency and the economy (Contractor. 2020). The overall viability of an investment may be affected by currency value fluctuations, which can affect expenses, revenues, and profits. It is crucial to recognize and control these financial risks through hedging and diversification to lessen the blow of any prospective losses. References

6 Contractor, F. J., Dangol, R., Nuruzzaman, N., & Raghunath, S. (2020). How do country regulations and business environment impact foreign direct investment (FDI) inflows? International Business Review , 29 (2), 101640. Janský, P., & Palanský, M. (2019). Estimating the scale of profit shifting and tax revenue losses related to foreign direct investment. International Tax and Public Finance , 26 , 1048- 1103. .

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

ECON-CL-5-EXERCISES.pdf

scan_20231125161153.pdf

Screen Shot 2023-11-27 at 8.53.29 AM.png

Final Milestone-11.pdf

Screenshot 2023-01-17 at 12.18.09 PM.png

Econ 101_Set 6.docx

Screenshot - 2023-11-05T230551.802.png

Assessment 7 (page 6 of 18).pdf

Screenshot_15-2-2024_155440_app.sophia.org.jpeg

TEST1.docx

Assessment 2 (page 13 of 16).pdf

Assessment 2 (page 5 of 16).pdf

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Microeconomic Theory

Economics

ISBN:9781337517942

Author:NICHOLSON

Publisher:Cengage

Microeconomics: Private and Public Choice (MindTa...

Economics

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

Economics: Private and Public Choice (MindTap Cou...

Economics

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:Cengage Learning

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L