Investment Exercise There is a town in Peru which is bountiful in resources.

The leadership has recently changed to help provide for an improved society. The new leadership has declared their intention to enhance and modernize their out-of-date infrastructure, generate new jobs, and increase trade between Peru and the United States. In order to accomplish this, the leaders have evolved decades-old policies that kept prohibited foreign investment and have gone on record, stating they are open to any form of investment as assistance as they perusing these new goals. The Finance Minister of the nation needs assistance in how to begin executing these goals. Therefore, he meets with his economists and analyzes the goal of how to bring the most money into his nation. His staff brainstorms the question and tells him that he is left with three options: 1) 2) 3) Get loans from banks overseas to help domestic companies within Peru. Ask the Peruvian or U.S. governments to give his country the money through any forms of gifts or grants to build such infrastructure Convince businesses in Peru or the U.S. to use their own company money to fix up or buy factories within the country.

The Finance Minister thinks over these 3 opinions. They all have their own strong points and weak points. He then asks his advisory staff the following questions or concerns: 1. Of each option, what are the benefits? Have to consider different factors as diverse as how fast Peru could receive the investment, how citizens might feel about each approach taken, and which option would guarantee the most money. 2. What are the weaknesses of each option?consider the same factors. 3. What are some side effects, both negative and positive, of each option, in are areas which arent so obvious, such as the environment, cultural globalization, standard of living?