Managerial Economics: A Study Guide

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Running Head: Managerial Economics Managerial Economics Executive Summary A manager's decision to start a new business in an international market essentially requires a careful analysis of the industry patterns, economic situation, and consumer behavior. The question is whether a new business should be started in an international setting or not. The answer to this question has been given in the light of ten important factors and costs which impact this managerial decision for a new business. This answer is meaningful for the mangers as it takes into accounts all the economic, social, and geographical factors which are important in conducting a feasibility analysis for a new business. The factors are also categorized as explicit and implicit in a view to give a better representation of their importance in economic sense. Definition of the Question This section defines and explains the managerial question that is to be answered in this research paper. The question is related to setting up a new business in an international market. It is basically a feasibility analysis for a new business which will help the manager in deciding whether he should set up this new business or not. The question will be answered in the light of different factors and costs which can directly or indirectly impact the manager's decision. If the results of the analysis will give a positive appraisal of the new business, the manager will choose to make investment in the business. Conversely, if
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