Global Managerial Economics- Phase 5 - Decision Making in a Global Economy

Task Type: Individual Project   Deliverable Length: See assignment details    
Due Date: 11/09/2014 11:59:59 PM  CT [removed]    

Must have 2-5 APA references

Assume that in a recent State of the Union Address, the President of the United States announced the formation of the "National Export Initiative," which is an important endeavor that is necessary for long-term, sustainable economic growth for the country. The president's goal is to double exports within 5 years, which should reduce unemployment by adding 2 million jobs.

This is the first time in history that the United States has put a real focus on government-wide export promotion.

Since then, the president has signed an executive order that formed the "Export Promotion Cabinet" within the presidential administration. The Department of Commerce is an important player in this initiative, and it is charged with making sure that U.S. businesses can actively participate in international markets by increasing their exports of goods, services, and agricultural products.

Part 1

If you were a member of the cabinet, what would you do to achieve these goals?

Address the following in 1,000–1,250 words:

• Increase exports of small and medium-sized businesses.
  • What kind of programs should be put in place to improve information?
  • What kind of technical assistance should be given to first-time exporters?How can the government assist these exporters with new opportunities in international markets?
    • What kinds of education do first time-exporters need to do business overseas?
• What other kinds of assistance can the government give?
• How can consumers help?
• How can the banks help?
  • What does the export-import bank do?
• What macroeconomic policies would be helpful?
  • Should the Fed involve itself more in the foreign exchange rate?
  • Should interest rates remain low?
• How do you reduce barriers to trade? What issues do you think will come up in new markets with old trade barriers and enforcement of current trade agreements?
• How does all this achieve the president’s objective of reducing unemployment and increasing gross domestic product (GDP)?
• Are there any risks to U.S. fiscal, monetary, or trade policies?

Part 2

Part of a business strategy that you are considering involves the reduction of labor and material costs. Your chief financial officer (CFO) suggested doing some of the manufacturing overseas. The concerns in moving some of your manufacturing offshore may be that you achieve lower costs of production but lose quality control (a trademark of your brand) and perhaps even reduce morale in your company by laying off those workers whose jobs will be performed overseas. These are serious issues. You asked your CFO to outline the benefits and disadvantages of doing so in regard to your relationship with your employees, balance sheet, quality, and service.

Explain 3 additional benefits and 3 additional disadvantages that would concern you and the economy, and answer the following questions in 500–750 words:

• What would you conclude?
• Is there something else you can do with those employees that you would be laying off?