Question

You are the Chief Executive Officer of a powerful multinational corporation that sells household goods similar to products of Nestle, Unilever, and Procter Gamble corporations. You are using the corporate valuation formula to maximize the value of your corporation for your shareholders Value =∑i=0[infinity]​(TRi−TCi)÷ Riski Please identify 3 significant global economic/business issues that will impact your efforts. For each issue please do the following: 1. State the issue. 2. Cite your source that helped you identify the issue. Format is optional as long as I can reach this source. 3. Explain why the issue is important and how it will impact the value of your company using the formula (e.g., will it impact revenue, cost, risk or some combination of them).

Answer 1

Trade wars, global economic recession, and regulatory changes are three significant global economic/business issues that can impact the efforts of a multinational corporation.

Step-by-step explanation:

As the Chief Executive Officer of a multinational corporation, there are three significant global economic/business issues that can impact your efforts:

1. Trade Wars: Trade wars between countries can impact the revenue and cost of your company. Higher tariffs and trade barriers can increase the cost of importing raw materials and exporting finished products, reducing profitability.
2. Global Economic Recession: A global economic recession can lower consumer spending, leading to a decline in revenue for your company. It can also increase the risk associated with investments and financing.
3. Regulatory Changes: Changes in regulations and policies can impact the business environment in which your company operates. These changes can affect costs, competition, and market access, ultimately influencing the value of your company.