In Week 2, you created a strategic plan for a U.S.-based manufacturing firm; that plan included an aggressive growth plan for setting up a manufacturing plant in a foreign country that required: (1) investment in facilities and equipment, (2) growth in productivity, and (3) growth in employment from 100 to 2,000 over the next five years.
Now, imagine your team has been given the responsibility to determine whether the firm should locate its new manufacturing plant in the U.S. Consequently, your team needs to develop a 2,100-word (the word count includes the table) economic outlook/forecast. Use thebolded words/phrases shown below as first-level headings for your paper. Your paper should include the following:
- Economic Indicators Table. Complete the economic indicators table that is posted with this assignment as a Student Material. OPTIONAL FORMAT FOR TABLE: Your team has the option of incorporating this table into your paper or creating a separate PowerPoint presentation for the indicators listed in the table. If you choose a PowerPoint presentation, your team needs to devote one slide to each economic indicator listed in the table, and your team still needs to submit an MS Word document with the other elements of this assignment as described below.
- Government Policies. Discuss how U.S. government policies, including fiscal policies and trade policies, can influence economic growth. (450 words)
- Monetary Policy. Analyze how U.S. monetary policy could influence the long-run behavior of price levels, inflation rates, costs, and other real or nominal variables.
- Trade Deficits or Surpluses. Describe how trade deficits or surpluses can influence GDP.
- Availability of Financing. Discuss the importance of the market for loanable funds to the achievement of the strategic plan.
- In your conclusion, include recommendations on whether the new manufacturing plant should be located in the U.S. or in one of the countries evaluated by your teammates in their Week 2 papers. Base your recommendations on the information you gathered for this paper, especially the information included in your economic indicators table and for your Week 2 paper. In addition, your conclusion should review all the major elements of this assignment.