| Course | TGF-7130 Topics in Global Finance |
|---|---|
| Module | Module 2 |
| Paper type | Module 2 written assignment: the international environment |
| Length | About 555 words, 5 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | MBA in Finance |
| Updated | October 2026 |
Free sample paper for TGF 7130 Module 2
Closer and Safer, or Cheaper and Farther: Country Risk for a Second Filter Plant
Student Name
MBA in Finance, Thomas Edison State University
TGF-7130: Topics in Global Finance
Mentor Name
Month Day, Year
Closer and Safer, or Cheaper and Farther: Country Risk for a Second Filter Plant
The Decision
Demand for our cartridges is rising faster than our Edison plant can grow, and the plant has no room to expand. Leadership has narrowed the options for a second plant to Monterrey and Binh Duong. Both have industrial parks with experienced plastics and assembly workers and established suppliers nearby. The choice turns on the environment each country offers, since the buildings, wages and suppliers in the two parks are broadly comparable and neither has an obvious edge on the factory floor itself.
Political and Legal Environment
Griffin and Pustay (2015) describe political risk as the chance that political changes will cause a firm to lose value, ranging from government instability to changes in trade policy, and legal environments as shaping contracts, property rights and the treatment of foreign firms. Henisz (2000) showed that political constraints on policy change, institutional checks that make sudden policy shifts harder, are associated with more multinational investment, because they lower the risk of expropriation and abrupt rule changes.
| Factor | Monterrey, Mexico | Binh Duong, Vietnam |
|---|---|---|
| Trade access to U.S. | Duty-free for qualifying goods under the USMCA | Subject to U.S. tariffs on many goods; trade policy uncertainty |
| Legal protection | Established commercial courts; slow enforcement | Developing legal system; contracts harder to enforce |
| Policy risk | Periodic disputes over trade and energy policy | Stable one-party government; less predictable regulation |
| Intellectual property | Moderate protection | Weaker protection for filter media formulas |
Economic Environment
Vietnam's wages for assembly workers are roughly half of Monterrey's, but total landed cost tells a different story. Shipping from Vietnam to our U.S. customers takes five to six weeks; from Monterrey, three days by truck. Our cost model shows that after freight, duties and inventory in transit, a cartridge made in Binh Duong would cost about 4 percent less delivered to the United States than one made in Monterrey, before considering risk, and the gap would shrink if freight rates rose to the levels seen in recent years.
Cultural Environment
Hofstede (2001) mapped national cultures on several scales, among them power distance, individualism and the avoidance of uncertainty. Both Mexico and Vietnam score higher than the United States on power distance, so our plant managers should expect workers to defer more to supervisors and should create channels for raising problems. Our engineers have worked with Mexican suppliers for years; none speak Vietnamese, and travel to Vietnam takes a day each way.
Country Risk Scoring
Monterrey scores 7.35 against Binh Duong's 5.85. The scoring reflects our situation, a firm selling mainly to U.S. customers and protecting proprietary formulas; a firm selling into Asia would weight the criteria differently and might reach the opposite answer. Even if delivered cost were weighted at 0.40, taking weight from trade access, Monterrey would still lead.
| Criterion | Weight | Monterrey | Binh Duong |
|---|---|---|---|
| Trade access to U.S. customers | 0.30 | 9 | 5 |
| Total delivered cost | 0.25 | 6 | 8 |
| Legal and intellectual property protection | 0.20 | 7 | 4 |
| Political and policy stability | 0.15 | 6 | 7 |
| Management access and culture fit | 0.10 | 8 | 4 |
| Weighted score | 1.00 | 7.35 | 5.85 |
Conclusion
Vietnam offers lower costs, but Mexico offers trade agreement access, stronger legal protection for our formulas, faster delivery and easier management. On the international environment as a whole, Monterrey is the better site for this firm at this time.
References
Griffin, R. W., & Pustay, M. W. (2015). International business (8th ed.). Pearson.
Henisz, W. J. (2000). The institutional environment for multinational investment. Journal of Law, Economics, and Organization, 16(2), 334-364. https://doi.org/10.1093/jleo/16.2.334
Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Sage.
What the TGF 7130 Module 2 instructions ask for
This written assignment covers the international environment. Expect to analyze the political, legal, economic and cultural factors in one or more countries, assess country risk and explain how these factors affect a firm's decisions about where and how to operate. Put country comparisons in tables, use weighted scoring where it helps and ground the analysis in the course text and in published studies. Test whether your conclusion holds if the weights change. Compare total delivered cost rather than wages alone, and include protection of intellectual property if the firm has valuable know-how. Keep each comparison specific to the two places you name. Test your weights.
How the TGF 7130 Module 2 example is put together
The paper sets out the plant decision. A section explains political risk and legal environments with research on institutions, and a table compares the two countries on four factors. A section on the economic environment compares delivered cost, and a section applies cultural dimensions to plant management. A weighted scoring table ranks the sites, the text tests the weights, and the conclusion recommends Monterrey. The scoring section notes that a firm selling mainly into Asia would weight the criteria differently, showing that the result depends on the firm's situation. Four tables compare the two sites on politics and law, cost, culture and a weighted score. The conclusion states that the recommendation fits this firm at this time, leaving room for a different answer if its markets change. Culture is applied to how the plant will be managed.
Reading the TGF 7130 Module 2 grading rubric
This assignment earns credit for correct use of environmental concepts, careful country risk work, grounding in the text and in studies, and logical argument. Papers that weigh environmental factors against cost, and test the weights, show judgment. Applying cultural dimensions to specific management practices shows understanding beyond labels. Comparing total delivered cost rather than wages demonstrates financial insight. Recognizing that weights reflect the firm's situation, and that another firm might decide differently, shows a mature understanding of country risk analysis. Delivered cost, not wages alone, shows financial insight. Testing the weights strengthens the conclusion.
Common TGF 7130 Module 2 mistakes, and how to avoid them
Students lose points by comparing countries on wages alone, by describing cultures with stereotypes or by scoring risk without explaining the weights. Others ignore legal protection for intellectual property. Compare total delivered cost. Explain each weight. Apply cultural dimensions to management decisions. Test whether your answer holds when the weights shift. State why your weights fit your firm and how a different firm might weight them with other priorities. Remember that legal protection for know-how can matter as much as what workers are paid. Apply culture to management, not to labels. A free first sample on your own TGF-7130 international environment assignment is available on request.
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TGF 7130 Module 2 questions, answered
Where can I find a free TGF 7130 Module 2 sample paper?
A country risk comparison of Mexico and Vietnam for a filter plant is the assignment above.
What is political risk?
The chance that political changes, such as instability or shifts in trade policy, will cause a firm to lose value.
Why do institutional checks matter to foreign investors?
Research finds that constraints on sudden policy change lower the risk of abrupt rule changes and attract investment.
How should firms compare production locations?
On total delivered cost and environmental factors such as trade access, legal protection and stability, not wages alone.
What are Hofstede's cultural dimensions?
Dimensions such as power distance, individualism and uncertainty avoidance on which national cultures differ.