Question;Unit 3 Assignment: Continue working with your Zip-6 Scenario;click to play;Following Coca-Cola?s model, Ravi and Keith want to;standardize and centralize syrup production in the U.S. for Zip-6;concentrate they will then ship to each bottling plant within each;country. Zip-6 management feels that this will be the best way to ensure;consistency across different markets and better protect the firm?s;formulation. Accordingly, Zip-6 notified each government?s trade;authorities and received permissions from Korea and Mexico to import the;syrup concentrate. To their surprise however, Brazil?s Department of;Foreign Trade (Carteira de Com?rcio Exterior--Cacex) has refused to;approve the import of the concentrate, insisting that the ingredients;available from Brazilian sources be used in the product that is sold;within that country. An existing permission has allowed the importation;of the herbal ingredient. There exists within Brazil a difficult and;time-consuming appeal process to the agency?s ruling (for importing;ingredients), within the Brazilian legal system.;Ravi and Keith believe that centralizing this production;would be in the best interests of Zip-6 but are hesitant to go forward;without one of its biggest markets (Brazil). Based on your reading on;pages 204-220, respond to the following;Political Risk Factors according to Hill, (2011) refers;to ?The likelihood that political forces [or the government] will cause;drastic changes in a country?s business environment that will adversely;affect?goals of a business enterprise? (p.82).;Checklist;Based on the political risk factor?s definition above;what political risk factors to Zip-6 would be involved in adopting each;of the following options: 1) appeal the decision, 2) treat Brazil as the;central concentration site rather than the U.S., or 3) forget about;adding in concentrate production to the existing operations in Brazil;altogether.For each of the options above, how might each of these options affect them financially?Respond to the checklist items in a 1 to 2 page APA;formatted paper. Make sure that if you use citations you limit these to;maximum two very short citations and include the accompanying APA;citations and an additional References page.;Reference;Hill, C.W. (2011). Global business today (7th ed.). New York, NY: McGraw- Hill.
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