Answer: External Industry Analysis
Explanation:
External Industry Analysis simply refers to the examination of the industry environment of a particular company such as its dynamics, competitive position, history etc.
The external industry analysis on a macro scale has to do with examining the factors like technological, political, demographic, and social analysis. External industry analysis is vital as it shows the threats and the opportunities that exist in a particular industry and can also be used to determine growth of an organization.
Answer:
Explanation:
There are different categories of evaluations a manager must make when examining a country's attractiveness such as Evaluation of Benefits, Evaluation of Costs and Evaluation of Risks. All these evaluation are necessary for high and sustained economic growth rates as well as means of attraction for location for international business for countries with market-based economic policies.
Cost evaluation provide insight on the total cost of the project.
Each of the given item are positioned below to the appropriate category of evaluations a manager must make when examining a country's attractiveness.
A. Evaluate Benefits
1. Middle-class population growth potential
2. First-mover advantages
7. Free market economy
B. Evaluate Costs
4. Infrastructure issues
5. Resolving contract disputes
6. Bribe payments
C. Evaluate Risks
3. Unaxpestec political change
8. economic uncertainty
Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
Answer:
0%
Explanation:
Given that,
Growth rate of money supply = 3% per year
Real GDP growth rate = 3% per year
Velocity = Constant
According to the quantity growth theory of money,
M + V = P + Y
where,
M = Growth rate of money supply
V = Velocity
P = Inflation rate
Y = Real GDP growth rate
M + V = P + Y
3% + 0 = P + 3%
3% - 3% = P
0% = P
Therefore, the inflation rate is 0%.
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