Context QuestionSince the beginning of covid-19 related lockdowns and border closure, important riskfactors such as inflationary pressures, rising energy prices, and labour and supply chainbottlenecks have become a bone of contention for investing overseas. In such a situation,Should DAMC consider marketing or producing its equipments in other emerging nations,despite their risks? Provide arguments in favor of your decision. Covid-19 looks like a "bend but won't break crisis" for globalization. International capital flows areplummeting, but globalization – and opposition to globalization – will continue to present businessopportunities and challenges. Careful attention to the drivers of globalization's future can help companiesnavigate through and even profit from globalization's turbulence. Sectors including the primary andmanufacturing sectors that have been severely impacted by the pandemic in developing economiesaccount for a larger share of their FDI than in developed economies.The coronavirus (COVID-19) pandemic has severely impacted multinational corporations (MNCS) andforeign direct investment (FDI) in developing countries, jeopardizing these firms' contributions to crucialdevelopment outcomes. In addition to bringing capital to developing countries, MNCS are key drivers ofglobal trade, accounting for about 80 percent of total exports. FDI can drive economic transformation byintroducing new technologies and best practices in developing countries.But after a big drop during 2020 caused by the COVID-19 pandemic, global FDI reached an estimated $852billion in the first half of 2021, showing a stronger than expected rebound". The duration of the healthcrisis, the pace of vaccinations, especially in developing countries, and the speed of implementation ofinfrastructure stimulus, remain important factors of uncertainty. In Asia Pacific, S&PGlobal Ratings' base-case scenario assumes that corporate balance sheets may recover slowly from 2ndhalf of 2022, albeit, at a slow pace. Furthermore, this may not be enough to stabilize credit quality yet. Evenwithin countries, there are significant recovery differences expected, depending on the corporate's industrysegment of operation. Foreign Direct Investment (FDI) could play an important role in supporting hosteconomies during and after the crisis through financial support to their affiliates, assisting governments inaddressing the pandemic, and through linkages with local firms.You and your team are part of the country risk assessment division in the world-renowned Moody's creditrating agency. This division provides business reports to listed companies considering investing inemerging nations. Deluxe Automotive Manufacturing Company (DAMC) is a Victoria based automotivecompany that manufactures spare parts of cars, buses, and trucks. The company is aware of country andforeign exchange risks once their operations move from domestic to international markets, but they do notreally know what risks and exchange rates are in operation in the various countries, especially as most ofthe countries are severely affected by Coronavirus. Though some countries have started recovering, still,some others have a long way to go. DAMC currently exports majority of their auto parts to South Korea buttheir director – Ray Brown - approaches your division with his dilemma:

Question

Context QuestionSince the beginning of covid-19 related lockdowns and border closure, important riskfactors such as inflationary pressures, rising energy prices, and labour and supply chainbottlenecks have become a bone of contention for investing overseas. In such a situation,Should DAMC consider marketing or producing its equipments in other emerging nations,despite their risks? Provide arguments in favor of your decision. Covid-19 looks like a &#34;bend but won't break crisis&#34; for globalization. International capital flows areplummeting, but globalization – and opposition to globalization – will continue to present businessopportunities and challenges. Careful attention to the drivers of globalization's future can help companiesnavigate through and even profit from globalization's turbulence. Sectors including the primary andmanufacturing sectors that have been severely impacted by the pandemic in developing economiesaccount for a larger share of their FDI than in developed economies.The coronavirus (COVID-19) pandemic has severely impacted multinational corporations (MNCS) andforeign direct investment (FDI) in developing countries, jeopardizing these firms' contributions to crucialdevelopment outcomes. In addition to bringing capital to developing countries, MNCS are key drivers ofglobal trade, accounting for about 80 percent of total exports. FDI can drive economic transformation byintroducing new technologies and best practices in developing countries.But after a big drop during 2020 caused by the COVID-19 pandemic, global FDI reached an estimated $852billion in the first half of 2021, showing a stronger than expected rebound&#34;. The duration of the healthcrisis, the pace of vaccinations, especially in developing countries, and the speed of implementation ofinfrastructure stimulus, remain important factors of uncertainty. In Asia Pacific, S&PGlobal Ratings' base-case scenario assumes that corporate balance sheets may recover slowly from 2ndhalf of 2022, albeit, at a slow pace. Furthermore, this may not be enough to stabilize credit quality yet. Evenwithin countries, there are significant recovery differences expected, depending on the corporate's industrysegment of operation. Foreign Direct Investment (FDI) could play an important role in supporting hosteconomies during and after the crisis through financial support to their affiliates, assisting governments inaddressing the pandemic, and through linkages with local firms.You and your team are part of the country risk assessment division in the world-renowned Moody's creditrating agency. This division provides business reports to listed companies considering investing inemerging nations. Deluxe Automotive Manufacturing Company (DAMC) is a Victoria based automotivecompany that manufactures spare parts of cars, buses, and trucks. The company is aware of country andforeign exchange risks once their operations move from domestic to international markets, but they do notreally know what risks and exchange rates are in operation in the various countries, especially as most ofthe countries are severely affected by Coronavirus. Though some countries have started recovering, still,some others have a long way to go. DAMC currently exports majority of their auto parts to South Korea buttheir director – Ray Brown - approaches your division with his dilemma:

Accepted Answer

Globalization and antagonism to it will continue to provide economic benefits and challenges.…