Assignment 1: Individual Research and Short Paper—Changing Regulatory Environment
A company’s operating strategy continues to change as the legal and political environment changes. When Argentina’s government assessed a local tax on consumer purchases using credit cards, American Express and other U.S. companies were already facing a highly inflationary market. To make up for lost revenues, American Express began to provide revolving credit products.
In this assignment, you will use the University online library resources and Internet resources to analyze the strategies companies use to deal with a change in regulations.
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- Select an MNC operating in the U.S. and discuss some of the implications of a changing regulatory environment, then address the following questions:
- How do companies evaluate market conditions for potential regulatory changes? Can this type of change be anticipated? Why or why not? What resources do companies have when faced with these types of changes?
- Do you think companies should withdraw from the marketplace after new legal regulations are put in place? Explain.
- What are the considerations companies account for prior to making any decisions?
- Select a U.S. company doing business in a foreign market, then address the following questions:
- What legal market conditions did the U.S. Company face and how did it deal with them?
- Do you think that operating in foreign markets is similar to operating in domestic markets? Why or why not?
- How can companies compete and survive in a marketplace despite the threat of legal restrictions and taxation?
Write a 4-pages essay in Word format. Apply current APA standards for writing to your work.
Use the following file naming convention: LastnameFirstInitial_M5_A1.doc.
By Wednesday, June 5, 2013, submit your assignment to the M5: Assignment 1 Drop box.
Assignment 2: Course Project Task 5—Risks of Unstable Economic Conditions (IKEA)
For this part of the project, you will examine the legal and economic implications of the strategies used by companies in unstable economic conditions.
Discuss how each of the following factors impacts your chosen MNC:
- Issues operating locally
- Issues operating in multinational marketplaces
- Governmental regulation from home country
- Sourcing products
- Import export restrictions
The risks the client company might anticipate when operating in a changing economic and regulatory environment. Analyze the MNC’s strategy in unstable economic conditions and post your comments to.