Review the attached Word document for instructions on completing your final class project. Use the information you have already gathered about your project including the citing the sources which should be a combination of reputable websites and peer-reviewed articles. Use APA format and professional language. Review the instructions in week 12 and the rubric for detailed requirements. Visit
https://owl.purdue.edu/owl/research_and_citation/apa6_style/apa_formatting_and_style_guide/general_format.html
website for APA format guidelines if needed. Your powerpoint may have a SWOT diagram, but in your paper explain in detail each area of the SWOT analysis and your recommendations. Be creative, clear, and convincing.
1) Your paper should be at least 5 pages not including title and reference pages. You should have at least 5 references.
2) Your powerpoint should be at least 3 slides but no more than 5 slides include a summary of your product and country, a SWOT diagram, and your recommendations of stratgies that could mitigate any risks.
A tutor did the paper already but did not meet all of the requirements, so I put it here so you can use it.
International Project and SWOT
You are the owner of a corporation that operates within the United States. Your product has
saturated the market in your local area and your customer base is loyal. You are seeking
opportunities for your product in another market based on a need or gap and are considering
introducing your product in an international market. You want to do extensive research on this
new market by answering the following questions to convince potential shareholders and
stakeholders that the project would maximize their wealth and you have effective strategies to
mitigate any risks and a SWOT analysis that your product is aligned with social responsibility.
Be sure to support your work with peer-reviewed articles, in-text citations, APA format, and
reference list. Remember, this research project requires a power point presentation done
during class.
1) Describe your product in detail and a general summary of the country you have selected. Be
sure to include evidence that there is a need for the product and other metrics such as history,
culture, language, current events (e.g. politics, economy, etc.). Anything pertinent to your
product, can you get the raw materials you will need?
2) List and describe all factors that might affect demand for your product, import controls, trade
data and agreements, foreign exchange information.
3) List strategies you would use to thwart factors that will negatively impact your product sales
or you establishing a business in the host country. Discuss how the host country’s economy
operates (e.g. central bank intervention, mode of currency, bank loans, inflation). Explain how
you would hedge against exchange rate risk. Explain why your strategy will be effective.
4) Does the host country engage in blocking funds? What are the tax rates (e.g. income,
corporate, property tax)? What is the current spot and forward rates? Does an IFE exist? What is
the interest rate on loans? What rate of return does the country pay on its treasury bonds?
5) Will you be affected by transactional, translational or economic exposure? What is your
strategy to mitigate the impact of these exposures?
6) Assess your host country’s balance of payments. Is it in a deficit? What are its major imports?
Exports? Where does it need improvement? What are its most valuable resources?
7) Use the information you gathered to create a SWOT analysis, focus your SWOT analysis on
social responsibility. What issues is your country facing that are related to your product or
business? How does your product and subsidiary plan on incorporating social responsibility
practices in the community in your country? Examples of factors to consider are climate
change, healthcare, education, food, poverty etc. You can create a diagram for your PowerPoint
presentation.
8) International business organizations are focused on an array of social issues and calling for
corporation to be socially responsible whether regarding the environment, inequality,
discrimination, hunger, healthcare, world peace, and many others. Research using peer reviewed
articles to support each area shown on the SWOT analysis to address corporate social
responsibility. Below is a table to assist you in your SWOT analysis focusing on social
responsibility:
Strengths:
1. Brand/Image – How will you establish an
image of social responsibility to your
community?
2. Manufacturing/Technology – What
“Green†technologies will you adopt?
3. Raw Materials – How will you
incorporate environmentally raw materials,
practices, and policies?
4. Leadership- What procedures would you
implement to encourage customers, vendors,
and employees to cooperate with the social
responsibility strategy?
Opportunities:
1. Developing Markets -How is your
industry competitors implementing social
responsibility practices? What Ideas would
you adopt?
2. Government – What government or
regional initiatives are being implemented to
solve social issues? Which initiative could
your firm focus on?
3. Community – What history, cultural, or
attitude does your community have that
positively supports changes related to the
environment and society?
4. Partnerships – What partnerships could
you make with companies that are already
leading in social responsibility your
community?
Weaknesses:
1. Brand/Image – What aspect of your image
might encourage a lack of sustainability,
social discrimination, or inequality?
2. Manufacturing/Technology – What areas
in production of your product might have
high waste, inefficiency, or non-renewable?
3. Raw Materials – Approximately what
percentage of your raw materials might not be
environmentally friendly?
4. Leadership – As a leader in your
organization how do you rate yourself as
being aware and willing to incorporate
corporate social responsibility?
Threats:
1. Developing Markets – What areas is your
industry not being socially responsible?
2. Government – What areas is your
country’s government not focusing or
effectively solving social issues?
3. Community – What history, cultural, or
attitude does your community have that
negatively deters changes related to the
environment and society?
4. Partnerships – What companies in your
community are being socially irresponsible
that might impact your business?
Remember, you are trying to convince investors that your project is the best, a good investment
to maximize their wealth.
Be creative, be clear, and be convincing!
Introduction
• Moroccan economy has been characterised by macro-economic stability and low levels
of inflation.
Body
•
Consumers in Morocco to purchase local products and brands.
•
The Government of Morocco sees itself as very stable in middle east region.
•
Moroccan government has governing body that governs flow of currency in and out of
the country known as “Office de change†which is strict on matters of managing flow of
currencies in and out of the nation.
•
The mean value for Morocco was 3 index points with a minimum of 3 index points in
2019 and a maximum of 3 index points in 2019.
•
The regional fight over Western Sahara is not likely to be solved soon or in the one-year
stance.
•
There are ineffective weak intellectual property rights, government bureaucracy as well
as slow regulatory reform.
•
In the year 2012 Morocco was position 88 out of 176 countries in the Transparency
Global corruption perception index (CPI).
•
Public procurement is one of the departments that is affected by corrupt practices with
negative repercussions.
•
The rate of inflation for purchaser prices in Morocco shifted for the last 4 decades
between 0.2 percent and 12.5 percent.
•
The Moroccan National Bank left its monetary policy rate stable at 1.5 percent as at
September 2020.
•
The investors and travelers shall continuously get a better exchange rates in Morocco.
•
Long a principally agriculture nation with main exportations in orthophosphates
•
Industrial growth has been witnessed in Morocco through its continuous production
averaged 2.56%
•
Debt investments is less risky as compared to equity investments however, it normally
offers low but steady return
Running head: MOROCCO’S RISKS
1
Morocco’s Risks
Ismail Lahrichi
Keiser University
MOROCCO’S RISKS
Political Risk
Consumers attitude toward
buying local products
2
Ratings
(1-5)
3
Government laws impose
political risk on MNC
subsidiaries
4
Blockage of Fund Transfers
4
Currency Inconvertibility
3
War
4
Explanation
Consumers in Morocco to purchase local products and
brands. However, they are gradually to foreign commodities
specifically youths. Additionally, Moroccan consumers are
not mostly loyal to brands a trend that is ongoing.
The Government of Morocco sees itself as very stable in
middle east region. The government has played critical role in
ensuring there is peace process in the region. The nation has
made a remarkable progress in the democratization process,
respect for social and economic reforms allowing other
nations to invest in its economy. For example, the European
Union is considered to be Moroccan important trading
partner. As such, the government has flexed its laws to
international companies willing to invest in Morocco.
Moroccan government has governing body that governs flow
of currency in and out of the country known as “Office de
change†which is strict on matters of managing flow of
currencies in and out of the nation (Economic Freedom
(Morocco), 2020). As such, getting funds from banks for the
aim of studying or traveling abroad is allowed with caps due
to rules and regulations set forth. For business transactions
there are transparent procedures to pay the creditors, however,
this is strictly controlled usually through ‘letters of credit’ and
so on, and methodologies that are managed through financial
institutions and stringently monitored by the ODC. The main
reason for this is to discourage hard currencies from leaving
the country and all the repercussions it might have on an
economy that is quite susceptible to Morocco.
The mean value for Morocco was 3 index points with a
minimum of 3 index points in 2019 and a maximum of 3
index points in 2019. The newest value from is index points
(Global Economy, 2020). Considering these indexes, it shows
that it is easier to covert Moroccan currency to other
international recognized currencies without much
bureaucracy.
The regional fight over Western Sahara is not likely to be
solved soon or in the one-year stance; sporadic as well as
limited fights relating to small-arms fire are possibly along
the borders (Openexport, 2016). Restitutions of the United
Nations directive will possibly continue to prevent direct
army conflict between the Polisario Front and Morocco as
well as the latter’s main backer, that possibly wishes to evade
a return to military warfare. Continuing political transitions in
the neighboring countries further decreases the possibility of
military war.
MOROCCO’S RISKS
3
Inefficient Government
2
Corruption and Bureaucracy
3
Financial Risks
Inflation
2
Interest rate
4
Exchange rates
2
Industry competition
2
Morocco has attempted to enhance and streamline its business
atmosphere, however, the only challenge that is still existing
include ineffective weak intellectual property rights,
government bureaucracy as well as slow regulatory reform
(Economic Freedom (Morocco), 2020). Resolution of
bankruptcy improved in 2019. Stiff labor rules and
regulations discourage dynamic labor market. The cost of
government, fuel, butane gas sugar, as well as flour subsidies
has up surged
In the year 2012 Morocco was position 88 out of 176
countries in the Transparency Global corruption perception
index (CPI). This indicates that high level of corruption is
strongly rooted, that slows down the nation’s growth, in spite
of the series of campaigns against the vice.
Public procurement is one of the departments that is affected
by corrupt practices with negative repercussions for quality
and cost of public services, in spite of the fact that processes
of tenders of the government have been transformed to
upsurge transparency. The Moroccan agencies launched a
campaign in the year 2006 to fight trafficking ornaments and
promised to fight against the culture of impunity.
The rate of inflation for purchaser prices in Morocco shifted
for the last 4 decades between 0.2 percent and 12.5 percent.
For the year 2019, the rate of inflation of 0.2% was calculated
(The World Bank, 2020).
The Moroccan National Bank left its monetary policy rate
stable at 1.5 percent as of September 2020. Policymakers
similarly took into consideration the economy financing
conditions that remain sufficient after endorsing a host of
alleviating measures to cushion the effect of the worldwide
epidemic (The World Bank, 2020).
The national bank noted that consumer prices recovered by
0.9 percent was driven by instable food prices. The economy
is currently anticipated to contract 6.3 percent in the year
2020.
The investors and travelers shall continuously get a better
exchange rates in Morocco, because the dirhem is considered
to be a closed currency and not typically available
outside Morocco (Economic Freedom (Morocco), 2020).
Hence exchange rates in this nation are not believed to good.
It is easier to change immediately one get there, comprising at
the airports.
Long a principally agriculture nation with main exportations
in orthophosphates, Morocco has managed to develop its
industry for the last ten years. Morocco’s speedily rising
automobile sector is helping to drive the industrial
development of an economy still deeply relied on agriculture.
MOROCCO’S RISKS
Industry growth
4
3
Industrial growth has been witnessed in Morocco through its
continuous production averaged 2.56% from the year 2000
until 2020, reaching a high percentage of 9.40% in 2000 and a
record low of -21.40% in the subsequent quarter of 2020.
I prefer to finance the business with debt investments because it tends to be less risky as compared
to equity investments however, it normally offers low but steady return. Debt financing is also less volatile as
compared to common stocks, with fewer lows and lows as compared to the stock market. Furthermore, a lender
has right to repay the agreed-upon principal of loan and interest cannot directly claim or be calculated on future
profits of the business. Debt financing is available in Morocco and any can seek these funds.
Likelihood it will occur (110)
Water Crises
Human-Made Environmental
Disasters
Natural Disasters
Asset Bubble
Extreme Weather
Highest impact (1-10)
Score
5 Cyberattacks
6 Water crises
7
4
3 Weapons of mass destruction
3 Infectious diseases
5 Human-made environmental disasters
3
6
5
Climate action failure
Cyberattacks
4 Natural disasters
6 Information infrastructure breakdown
4
6
Global governance failure
Data Fraud or theft
3 Biodiversity loss
6 Climate action failure
4
5
References
Economic Freedom (Morocco). (2020). Retrieved from https://www.heritage.org/index/country/morocco
MOROCCO’S RISKS
Global Economy. (2020). Morocco: Transfer risk. Retrieved from
https://www.theglobaleconomy.com/Morocco/transfer_risk/
Openexport. (2016). Overseas Business Risk – Morocco. Retrieved from
The World Bank. (2020). Inflation, consumer prices (annual %). Retrieved from
https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG
5
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