Presentation on the consumption of goods related to global trade issues
The chief executive officer (CEO) of your company has asked you for a presentation on the consumption of goods related to global trade issues and the competitive environment that the company may face in expanding to untapped markets.
Help with this Unit 3 project is in Chapters 4, 5, and 11 of Managerial Economics: Foundations of Business Analysis and Strategy. Address the following in your presentation:
One slide: Outline the basic assumptions of consumer theory.
One slide: Explain the utility of your company’s product or service.
Two slides: Discuss how managers view the structure of the markets in which they sell their products or services.
Three slides: Compare the competitive environment that the company faces within the United States with what it will face in the country where it locates.
Three slides: Examine the global trade issues that the company may face, including cultural differences.
Two slides: Assess differences in legal and political systems and other institutions.
Three slides: Predict the competition with other foreign companies and domestic companies within the new country.
Slide 1: Outline the basic assumptions of consumer theory
- Consumers are rational: This means that consumers make decisions that are in their best interests, given their budget constraints and preferences.
- Preferences are transitive: This means that if a consumer prefers A to B and B to C, then the consumer also prefers A to C.
- Preferences are complete: This means that the consumer can rank all possible consumption bundles in order of preference.
- Preferences are continuous: This means that the consumer is indifferent between consumption bundles that are very close together.