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financial policies that promote trade in today's global economy


A business associate of yours founded Primetime Systems, Inc. in the Midwestern United States many years ago as a provider of electronic systems. When its product first entered the market, it was unique, and the company experienced growth at 5-7% a year for several years.

In recent years, the product composition consists of 25% hardware and 75% software. The hardware and software make up the cost of goods sold, which is 48% of the sales. Some designs now incorporate a microprocessor and an increasing number of integrated circuits.

In the current decade, however, both growth and profit have declined. Primetime is now exploring avenues that may recover the former profit level. One plan that is being considered is to move either the hardware or software to a different candidate country.


You have been hired as a consultant to analyze the possibilities, make a recommendation on what path to follow, and assist in transition.

1. Your supervisor has been asked to deliver a presentation at a conference on the financial policies that promote trade in today's global economy.

2. He has asked you to research the subject including the underlying assumptions, such as the forecasted/historical foreign direct investment (FDI) rates, economic outlook, trade forecasts for the next 5 years, and any possible alternative views (weaker economy, lower trade, etc.).

3. To assist in his preparation, be sure to describe the drivers of international trade, including technology advancements.

4. Please research the financial policies that promote international free trade. Use the notes section of PowerPoint for all of your narration.

5. Please cite all references used.

Solution Summary

global economy is discussed very comprehensively in this explanation..