Assessing the political, legal, and economic business environment is an important activity as the accurate evaluation of these factors can have an impact on business decisions and the resulting outcome. In this Assignment you have the opportunity to apply research into these areas to apply it to summarize a recommended course of action to management.
As owner of an American-based t-shirt distribution business, you have an opportunity to acquire a competing t-shirt manufacturing facility based in China. The acquisition price is below book value. After completing some marketing research, you must make a recommendation to your management team in favor of acquisition or against acquisition based on your assessment of the political, legal, and economic climate in China.
Checklist:
Describe any political risks associated with this offer.
Describe any economic risks associated with this offer.
Summarize and explain your recommendation to management.