Chapter 14, Problem 4BIC

A manufacturing company plans to expand their production and logistics facility into one of the countries listed in the following table. The cost of building such facilities in each country differ based on the state of its economic and political climate.  What is the best decision alternative using MINIMAX REGRET decision criterion?  What is the best decision alternative using criterion of realism at alpha = 0.8?

The word trap suggests that there may be a way to escape. Do you think developing countries can escape all of the traps described in this chapter? Which ones would be most difficult to escape? How could the developed world be of assistance in these cases? Could developed countries do more?

When investing in a natural resource project, a mining firm can add value to the project by a. selling copper in advance to customers b. taking out political risk insurance from the home government c. all of the above d. using foreign financing

As international monetary system is looking into moving forward towards digital transformation, What are the advantages and drawbacks, and What are the suggestions for reducing the risks.    https://www.imf.org/en/News/Articles/2021/06/30/sp063021-digital-technology-how-it-could-transform-the-international-monetary-system (Links to an external site.)

a)fast internationalization strategy for Better Generation has some associated risks. What are these risks?  b)  Better Generation requires some resources for a fast internationalization strategy. How can Better Generation build these resources?  c)  How should Better Generation develop its international strategy in terms of countries chosen and entry modes?

Let’s assume the U.S. faces trade-offs between military missiles (MM for Ukraine) and Bridge Repairs (BR in the U.S.). In other words, we are assuming the U.S. can use its scarce, productive resources (land, labor, capital, and entrepreneurship) for the production of military missiles for Ukraine (transfer of resources to Ukraine) or for the repair of bridges in the U.S. (Infrastructure).  We are assuming the amount of resources is given, technology is given, and the U.S. is producing using all of its resources which means there are no unemployed resources.          MU      BR            Trade-Off: To produce an additional missile                                                            for Ukraine, the opportunity cost is the value                                                           of bridge repairs foregone                                                                                                                MUs  :  BRs             0 MUs             140 BRs…