Walden University Week 7 CH19 Overseas Expansion & Investing Overseas Paper

For this Discussion, imagine the following scenario:

You are the director of new business development for your company, and your vice president wants to expand into new markets overseas. Your company’s core competency is in the area of constructing, staffing, and operating customer call centers. Your VP reasons that since the cost of labor is cheaper overseas, the company will automatically generate a higher rate of return by investing overseas.

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Prepare your reactions to the following questions and concerns:

• What is your reaction to the vice president’s premise? True? False? Why? Is it really that simple?
• Describe other types of risk that play a role in making such a decision to expand internationally.
• Should you always assume that foreign projects need to generate higher returns when compared with equivalent projects in the U.S.? Why or why not?
• Be sure to support your arguments from the readings and outside research.

ASSIGNMENT
For this Assignment, complete Problem 19-17, Parts a, b, and c on page 697 of your course text. This case examines the effects of exchange rates on net present values and rates of return. EXCEL

In addition to solving for the rates of return from the U.S. and Swiss points of view, write a paragraph that summarizes your key learning points from this case. Be sure to include your calculations as an appendix. WORD