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Global Development
*INTERNATIONAL BUSINESS: GLOBAL ECONOMIC ENVIRONMENTS
Congratulations! You have been hired by the Big US Refrigerator Corporation as the new Director of Global Development. Big US recognized your talents as an innovative leader who not only has proven skill in global market expansion but also has a strong background in global economics. Big US has recently developed a refrigerator unlike any other currently available worldwide. The company is counting on global sales of this new refrigerator to significantly boost profits.
Your CEO has issued some recommendations to help you get started:
1. Big US may qualify for a government tax break because of the nature of the technology used in development. You should begin preparing the necessary paperwork to take advantage of this subsidy.
2. There are currently 10,000 refrigerators in existing inventory that will not be sold profitably in the US because they do not have the features US consumers want. These are an older model and we will not produce any more of them once these are gone. You should start researching whether you can sell them to a developing nation at a low price to recover some of the fixed costs.
3. One of your target markets is Europe as market studies have shown that European consumers will be drawn to the innovative features in our refrigerators. You should prepare a statement in support of the T-TIP agreement.
This assignment as Director of Global Development is to prepare a written response to your CEO’s recommendations. Be sure to consider both the short and long-run effects of the recommendations as you prepare your response. You should fully explain your reasons for accepting or rejecting each of the recommendations based upon your knowledge of global economic environments.
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