International Business 13th Edition by Donald Ball,Michael Geringer,Michael Minor ,Jeanne McNett

Exercise 14

Use the globalEDGE site (http://globalEDGE.msu.edu/) to complete the following exercises:
As an entrepreneur, you are interested in expanding your business to either Germany or Australia. As part of your initial analysis, you would like to know how much minimum investment is needed to enter each of these markets. To have an appropriate estimate, you hire a consulting firm to perform an initial investment analysis. The consulting firm provides a short report concerning the level of minimum investment needed for each country. Taken from the report, the minimum investment amounts enclosed are: 24 million euros (EUR) or 30 million Australian dollars (AUD). To make a clear comparison by using current exchange rates, you must convert each currency to U.S. dollars and suggest which country provides the better investment.