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You are an economic consultant for XYZ Corporation who reports to the VP of Finance, Maria Horowitz. You learned that multiple departments of your company

You are an economic consultant for XYZ Corporation who reports to the VP of Finance, Maria Horowitz. You learned that multiple departments of your company are collaborating to construct a presentation for a prospective client that explains how XYZ Corporation can help them improve their business. Maria has been asked to present on several financial aspects of an organization. She asks you to develop the sections of the presentation for two topics: government intervention and globalization. The potential client, named Fourevr Enterprises, has stated that they have a lack of understanding about governmental intervention and their business is projected to grow at a rate that has them concerned about factors such as externalities and market power. Additionally, Fourevr Enterprises has cited that they mostly operate domestically, both in terms of production and selling, because they are unfamiliar with and apprehensive to engage in globalization efforts.

Identify a product or service offered by Fourevr Enterprises and the industry that defines it. Select one that is or potentially can be involved in international trade and globalization. Some suggestions are:

  • Automobile manufacturing
  • Pharmaceutical research and development (R&D) and manufacturing
  • Financial industries
  • Software development
  • Entertainment/video games
  • Oil and gas exploration and production
  • Small businesses involved in importing and/or exporting consumer products

Part 2:

How does international trade affect Fourevr, both domestically and in international markets? How can existing or potential changes in trade policies affect Fourevr's operations? Does it make sense for Fourevr to outsource or offshore the production of any of its inputs or any of its operations? Why or why not? In what other ways might globalization affect Fourevr, both positively and negatively? In your response, consider the effects on Fourevr's prices, output, and profits. What can Fourevr do to better position itself to benefit, or protect itself, from globalization?

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