Assignment 1: LASA 2Risk Management Applications
While there are many factors that lead to an organization’s success or failure, it is important to identify the risk associated with the endeavorfinancial or nonfinancial. Once the risks have been identified, management has a responsibility to develop measures to mitigate those risks.
Tasks:
Use the you chose inModule 1and imagine it has made a strategic decision to start doing business in China. Using the discussion, : A Case in China with Country Risk, (Chapter 7,, page 192 of your textbook) as a model for the report you will write, prepare a report in which you:
- Develop a brief country risk assessment.
- Determine the political, economic, social, and capital risks associated with doing business in China. What are the most important factors to consider? Why?
- After years of keeping the Yuan pegged to the US dollar, in 2015 the Chinese allowed it to float freely in international currency exchange rate markets. You may read more about thehere. Many economists believe that keeping the Yuan pegged to the US dollar has caused it to be undervalued by 30 to 50 percent. Discuss what impact a revaluation of the Yuan might have on US multinationals doing business there, on Chinas exports, and on Chinese citizens standard of living. What impact would a revaluation have on Chinese inflation and on ? Explain.
Your paper should be about 2,000 words.
Submission Details:
- By the due date assigned, save your paper as M5_A1_lastname_firstinitial.doc and submit it to theSubmissions Area.
This LASA is worth 300 points and will be graded according to the following rubric.
Grading CriteriaMaximum PointsCommunicates understanding of identifying and selecting an organization appropriate for the assignment requirements60Communicates the ability to analyze the business case as well as the social benefits of the key initiatives100Communicates the ability to examine the highest risks of failure and recommend strategies to prevent such failures.100Communicates the ability to examine the highest risks of failure and recommend strategies to prevent such failures.40Total:300