Economic Risk, according to Hill (2014), refers to “The likelihood that economic mismanagement will cause drastic changes in a country’s business environment that hurt the profit and other goals of a particular business enterprise.” (p.82). Ravi and Keith recently were contacted by a friend close to the Jordanian Royal Family about the possibility of acquiring a small Jordanian-owned bottling company located in Lebanon to manufacture Zip-6 and expand the brand in the Middle East. This firm is available due to the death of its principal shareholder, a Jordanian citizen. It is sound financially and enjoys strong customer support within the Kingdom of Jordan and is growing in sales within Lebanon. As a person of Iranian descent, Ravi would like to contribute to jobs creation and financial stability to that region of the world but expressed his concern about making any acquisition in that region because of the instability in the area and poor political leadership in many of the neighboring nations. Ravi has asked you to conduct some research on Lebanon and give him your professional opinion.
Use the CIA Factbook website.
The World Factbook. United Stated Central Intelligence Agency. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/le.html
Respond to the following in an informative essay:
- Based on your research into Lebanon and your reading in Chapter 8, summarize the possible economic risks involved with such an acquisition entry and your recommendations for Ravi.
Draft your response addressing these points in 350 words or more in APA format and citation style with a separate title and reference page.