Topic

Dibimilano (http://www.dibimilano.it/) is one of the brands of the company Alfaparf Group. (http://www.alfaparfgroup.com/) They are considering growth strategies and have identified two possibilities - a) continue expanding in Russia after having set up an office in Moscow by opening a second office in St. Petersburg or enter into the Latin American market through Brazil by setting up an office in both Sao Paolo and Rio de Janeiro. They have got in touch with you so that you prepare an economic study of the two options.

Question 1 Identify the economic indicators you consider would be of most relevance to the company in comparing two BRIC markets and use them to compare the two economies. (Related to the first evaluation criteria - see table below)

Question 2a

Supporting your answer with data, compare the ease of doing business and the openness to the foreign trade of the two countries.

Question 2b

Evaluate how vulnerable each country is to external change - you should identify possible threats of external change such as changes in the value of the dollar; in the market price of oil, possible protectionist measures, increasing rivalry between the USA and China, etc, and evaluate the impact that they could have on the economy of the two countries. (Related to the third evaluation criteria - see table below)

Question 3

On the basis of your analysis, recommend which country dibimilano should continue their expansion into.