Decisions in USA Super Cars Assignment Example | Topics and Well Written Essays - 2500 words

Decisions in USA Super Cars - subsidization ExampleIf the company decides to take loan, it would be better for USASuperCars to accept a sure sum from HSBC in 3 months instead of 12 months. Although, the bank could face risks, it tramp shoot profits.To expand their operations and get newer opportunities, organizations would enter foreign markets. When organizations expand, they expertness need extra financial resources. To get that resource, they might approach flesh of options including banks for loans. This is relevant to USASuperCars as well(p). USASuperCars is a company which sells luxury sports cars in its home base of the United States, and similarly other countries. It has signed a contract to sell their super cars to customers in 5 countries. So, as it is expanding their operations, it might need financial resources. It has an option to get loan from the HSBC bank, but there are some risks associated with it. That is, as the selling prices are fixed and are dealt in loc al currencies at the exchange rates normal at the time of delivery, uncertainties can arise leading to problems for USASuperCars. At the same time, the financial status of USASuperCars is good. So, this authorship focusing on the standard deviation and mean in exchange rates, HSBCs loan offer, and the outcomes give help USASuperCars and its management to take a correct decision based on statistical analysis.Organizations operation in any sector would always find both internal and external opportunities to grow. That is, apart from decision opportunities in its home operations, an organization can also find prospects in foreign countries as well (Mellahi, Finlay and Frynas, 2005). However, operating in home operations as well as foreign operations can bring different set of challenges to the organization. When the currency of the home soil of the organization and currency of the entering country fluctuates due to various political and economic factors, it can affect organization s