Risk Assessment 1 | StudyDaddy.com

Prime Emerald Inc. is an upscale rug manufacturer in Flint, Michigan. Recently many Prime investors have petitioned for the rug manufacturer to acquire a foreign retailer in China “Rug Emporium” despite the economic state due to their client base and recent need of cash flow. The price of the retailer will be 1.7 billion in the country’s currency, but it has come to the CFO’s attention that it may not be a bad idea to establish a subsidiary for Prime considering a subsidiary would generate a better NPV or net present value. Considering that China has many risks, Prime has a big decision on whether to acquire or start anew.

Review the following case study:

In 1 to 2 pages:

  • Explain Prime Emerald’s possible success acquiring an existing retail business or establishing a new subsidiary considering the country risk factors.
    • Consider that MNCs measure political country risks in terms of likelihood of consumers and their act of purchasing locally produced products, any block of funds transfers, war of any kind, any host government movements against the MNC, bureaucratic issues and even currency that is not convertible.
  • Explain if Prime can encounter such risks and issues.
    • Reference the many financial risks that Prime can encounter including gross domestic product, interest rates, inflation and exchange rates.
  • Overall give a recommendation what Prime should consider between acquiring Rug Emporium or establishing a new subsidiary because of NPV and explain your rationale as to why they should consider your recommendation.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more