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1. What are the major types of published data that managers can use to compare countries?
Describe the tools available to managers for making country comparisons.
Answer: Market research and business consulting companies conduct
studies for a fee in most countries.
Some research organizations prepare fairly specific studies that they sell to
any interested company at costs much lower than for individualized studies.
Most companies that provide services to international clients publish reports.
These reports usually are geared toward either the conduct of business in a
given area or some specific subject of general interest, such as tax or
trademark legislation. Governments and their agencies are another source of
information. Different countries' statistical reports vary in subject matter,
quantity, and quality. Numerous organizations and agencies are supported by
more than one country. These include the United Nations, the World Trade
Organization, the International Monetary Fund, the Organization for
Economic Cooperation and Development, and the European Union. All of
these organizations have large research staffs that compile basic statistics as
well as prepare reports and recommendations concerning common trends
and problems. Trade associations connected to various product lines collect,
evaluate, and disseminate a wide variety of data dealing with technical and
competitive factors in their industries. A number of companies have
information-retrieval services that maintain databases from hundreds of
different sources. For a fee, or sometimes for free at public libraries, a
company can obtain access to such computerized data and arrange for an
immediate printout of studies of interest.
Two common tools for analysis are grids and matrices. A company may use a
grid to compare countries on whatever factors it deems important. The grid
technique is useful even when a company does not compare countries
because it can set a minimum score necessary for either investing additional
resources or committing further funds to a more detailed feasibility study. An
opportunity-risk matrix is important as a reflection of the placement of a
country in comparison to other countries. The companies must determine
which factors are good indicators of its risk and opportunity and weigh them
to reflect their importance.

2. Why do companies often treat foreign reinvestment decisions differently than new
foreign investment decisions?
Answer: Companies treat decisions to replace depreciated assets or add to
the existing stock of capital from retained earnings in a foreign country
somewhat differently from original investment decisions. Once committed to
a given locale, a company may find it doesn't have the option of moving a
substantial portion of the earnings elsewhere—to do so would endanger the
continued success of an operation in a given foreign location. Aside from
competitive factors, a company may need several years of almost total
reinvestment and allocation of new funds to one area in order to meet its
objectives. Another reason a company treats reinvestment decisions
 differently is that once it has experienced personnel within a given country, it

3. Why do most companies examine expansion proposals one at a time rather than
comparing various expansion proposals? Do you think this is effective? Why or why not?
Answer: Three major factors restricting companies from comparing
investment opportunities are cost, time, and the interrelation of operations.
Clearly, some companies cannot afford to conduct many investigations
simultaneously. If they are conducted simultaneously, they are apt to be in
various stages of completion at a given time. Further, in many cases they
need to respond quickly to an opportunity they had not anticipated, such as
an unsolicited proposal or limited offer from a government.