Posted by & filed under Uncategorized.

The Dow Jones Industrial Average has been up sharply in recent weeks. That all changed when protests turned to rioting in Egypt. At the same time, oil prices increased dramatically. Lenders to Middle Eastern countries are seeing the cost of protecting their investment going up precipitously. Some analysts contend that Egypt is just an excuse for market corrections that are overdue. However, others believe this may be just the beginning of deeper corrections.

QUESTIONS:

  1. Which dynamic forces are affected by the current unrest in Egypt? How should companies in the United States respond to these forces?
  2. In a bit of irony (given the discussion on page 62 in your text), the Egyptian government shut down internet access and limited cellular phone service. Discuss the implications of such a move. Do you believe the move warrants international regulation of access?
  3. Discuss how events in Egypt and throughout the Middle East relate to environmental uncertainty. What are the factors contributing to uncertainty? How would you classify (i.e., which quadrant of Figure 3.3) the current level of uncertainty?

SOURCE: M. Gongloff, “Dow Declines 166 on Egypt Unrest,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052748704680604576110510849507244.html)

Related video clip:

Leave a Reply

Your email address will not be published. Required fields are marked *