BELLOW IS THE ATTACHED QUESTION PLEASE CHECK IT CAREFULLY 

Scavenger Hunt II

1. Last week, Global New Products Director, Grady Greishem, of American Cyanamid pharmaceutical company in Wayne, New Jersey, was off on one of his globetrotting business trips. He visited many of his firm’s subsidiaries. His purpose was to meet with Country Managers and their New Products managers. He spent one to several days in each subsidiary discussing progress on local clinical animal trials of several products in development, product registration milestones and reviewing new product marketing plans and sales projections for the next five years. Generally, there would be two to four weekends where he could rest and tour the various cities, or take the slow trains from one country to another.

One of the personal challenges of these business trips was managing his expenses, since often he was in small agricultural towns or villages where his company American Express card was not honored. Cash was often the best form of payment. He received a $5,000 cash advance at the beginning of his business trip. Below is his business trip expense record. Mr. Greishem lists all his cash payments for which he has receipts. In this exercise, A) determine how much cash Mr. Greishem has on hand at the end of his business trip, B) his total charge card expenses and C) the total cost of his business trip (cash and charge card expenses). You may round-off all numbers to the nearest dollar amount. Be sure to identify each exchange rate, or cross rate. For the purpose of this exercise, assume a 0.2% cost for each currency transaction. For example, if 1000 euros were exchanged then the fee cost would be 2 euros. In this exercise you do not need concern yourself with airline or train expenses. These costs are another transaction handled by the home office or local subsidiary, i.e., a different budget line!

BELOW ARE MR. GREISHEM’S EXPENSE LOG:

Day One (Monday)

US$500 is exchanged for CN$ at the airport in Montreal, Ontario, Canada. (Remember, there is always a 0.5% currency transaction cost.)

CN$50 is cash expensed for a taxi from the airport to the hotel.

Dinner with country manager, Yves Martin, included two taxi rides. Each was CN$40.

Dinner and hotel were put on a credit card for CN$ 120 and CN$200, respectively.

Day Two (Tuesday)

Breakfast was included in the hotel expense.

For lunch, Yves paid. So, no expense.

At dinner that evening, the cost was CN$35 cash.

Hotel bill was CN$150 cash.

Day Three (Wednesday)

No breakfast expense.

Lunch with Yves was CN$100.

No expense to airport. Ate on the plane. (Again, do not be concerned with air or train expenses. These are handled by the home office and or the local subsidiary.)

The next day, arrived at London’s Heathrow Airport.

Day Four (Thursday)

At the airport, the remaining CN$ were converted to British pounds and an additional US$1000 was converted to British pounds also.

Hotel charge five days will be cash = £350, included breakfasts.

Picked up by company limo and travelled to Hoddeson, north of London.

Dinner was £25 cash at a local pub (Had real Bangers and Mash! By myself, too.)

Day Five (Friday)

Breakfast free. Picked up by Nick Spring. Had free lunch at the London office.

Dinner on own = £30 (Same restaurant)

Day Six (Saturday)

Visited livestock operations where clinical trials were being conducted.

Nick picked up lunch.

Skipped dinner. No other charges, except aforementioned hotel.

Day Seven (Sunday)

Lunch on my own = £20

Dinner on my own = £40 (Prime rib and Yorkshire pudding)

Day 8 (Monday)

At subsidiary office reviewing new product marketing plans.

Lunch free at office.

Dinner with Nick, William, Kate, Dr. Mudd and Gary = £450 cash

Day 9 (Tuesday)

Limo to Heathrow.

Lunch on plane to Madrid, Spain.

Converted remaining £ to €

Converted US$500 to €

Picked up by Paco and delivered to Hotel.

Paco picked up dinner charge.

Hotel charged @ €75 per day for 3 days.

Day 10 (Wednesday)

No expenses for today.

Day 11 (Thursday)

Paco picked up lunch.

Dinner with Alejandro, cash expense €150

Day 12 (Friday)

Breakfast with Alejandro. Cash expense €20

Alejandro takes me to train station.

Travel to Paris (about 10 hrs.)

Dinner on train €30

Hotel in Paris four days = €425

Pick up extra US$1000 in €

Day 13 & 14 (Saturday 7 Sunday)

2 lunches €40

2 dinners €110

No other charges

Day 15 (Monday)

No charges. Subsidiary paid

Day 16 (Tuesday)

Taxi to airport = €35

Fly back to JFK in New York from Paris on company jet.

Day 17 (Wednesday)

No expenses (caught limo to Rahway, NJ office)

Total Charged Expenses, US$ = ____________________

Total Cash Expenses, US$ = _______________________

Total transaction expenses, US$ = __________________

Total US$ cash left over = _____________________

Total Business Trip Expenses = _________________

SHOW ALL YOUR MATH. EACH ANSWER ABOVE IS WORTH 5 POINTS.

1. Go to globaledge.msu.edu. Go to Global Insights. Choose an industry of your choice.

1. Comment on the degree of “fragmentation” in this industry?

2. What are the primary demand drivers in your industry?

3. What are the primary profitability drivers in your industry?

4. Comment on the industry labor versus capital intensity?

1. “Brexit”

1. What is Brexit? Provide a credible citation.

2. What are the political implications of this development? Provide a credible citation.

3. What are the economic implications? Provide a credible citation.

4. What possible impact could this event have on European trade? Provide a credible citation.

5. Provide me with the latest October 2017 citation you can find on the Brexit situation.

1. Mode of Entry

Firms planning to market their products or services have several means of entering foreign markets. Generally, the upfront costs, opportunity for greater profits and risk vary with the chosen entry mode. Actually, there is a correlation of increased costs, profit opportunities and risk, by entry mode, that can be interestingly illustrated. This correlation can be seen as a 45-degree angle from the intersection of the “X” and “Y” lines when constructed in quadrant I. The entry modes, wholly owned subsidiary, franchising, exporting and joint ventures need to be properly sequenced from the X/Y intersection on the positive X line. Create this illustration in quadrant I. Show the X and Y intersection and the proper placement/sequence of these entry modes on the X axis. NOTE: The Y-axis is understood to be increasing upfront costs, greater profits and higher risk. PROVIDE A CITATION TO SUPPORT YOUR ILLUSTRATION.

1. Trans-Pacific Partnership (TPP)

1. What is/wasTPP and how was it created? Provide a credible citation.

2. What are the political implications of this development? Provide a credible citation.

3. What are the economic implications? Provide a credible citation.

4. What possible impact could this event have on global trade? Provide a credible citation.

5. What is President Trump’s position on the TPP? Citation?

If appropriate, you may use the same citation for the questions in TPP and/or Brexit.