You are an economic consultant for XYZ Corporation who reports to the VP of Finance, Maria Horowitz. You learned that multiple departments of your company are collaborating to create a presentation for a prospective client that explains how XYZ Corporation can help them improve their business. Maria has been asked to present on several financial aspects of an organization.
She asks you to develop the sections of the presentation for two topics: government intervention and globalization. The potential client, named Fourevr Enterprises, has stated they have a lack of understanding about governmental intervention and their business is projected to grow at a rate that has them concerned about factors such as externalities and market power. Additionally, Fourevr Enterprises has cited that they mostly operate domestically, both in terms of production and selling, because they are unfamiliar with and apprehensive to engage in globalization efforts.
For this Assignment, identify a product or service offered by Fourevr Enterprises and the industry that defines it. Select one that is or potentially can be involved in international trade and globalization. Some suggestions are:
Automobile or parts manufacturing
Pharmaceutical research and development (R&D) and manufacturing
Financial Industries
Software development
Entertainment/video games
Oil and gas exploration and production
Small businesses involved in importing and/or exporting consumer products
Maria has developed an outline of questions she would like to have addressed for the presentation and has placed them in the presentation template. She has tasked you with addressing the questions and filling out the presentation template.
In addition to responding to the prompts, you should include a cover slide, an Introduction to Fourevr Enterprises, and a References slide that includes all sources cited. Each content slide should also include detailed speaker’s notes that would be used to make the presentation to the leaders of Fourevr Enterprises. Use the presentation template provided to address the prompts.
Provide a brief introduction to Fourevr Enterprises, including type of business and industry and what types of products or services the company offers. (1 slide)
Define market failure and identify at least two of the most common forms of market failure. Select examples consistent with Fourevr’s operations (e.g., pollution controls for an oil and gas company, labeling requirements for a pharmaceutical company, intellectual property protection for an entertainment company, provision of public services such as police or fire protection, or publicly funded training programs to help train skilled manufacturing workers). (1–2 slides)
For each market failure identified, use graphs and economic models to explain the following (2–3 slides for each market failure):
The reason for the market failure
The possible or potential effects of the failure on Fourevr’s operations (whether positive or negative)
The role of government regulations/policy to correct each failure, and what effects those regulations might have on the company’s costs, revenues, and profits
Note: For each prompt, be sure to reference at least one scholarly source to support your answer.
