3p turbo case solution

Briefly identify some of the pros (2 pages) and cons (2 pages) of 3P Turbo’s investment in a Brazilian factory, use the evidence in the article, calculate some data, and maybe google some information to support you idea. Finally, explain your final decision. 4 pages in total.

For the exclusive use of Y. Lu, 2020. Lena Chua Booth Roy C. Nelson 3P Turbo—Cross Border Investment in Brazil “Brazil’s Senate voted 61-20 to remove President Dilma Rousseff from office, finding her guilty of breaking budgetary laws in an impeachment trial,” blared the CNN Money video headline that went across the computer screen of Jason Stacks, the founder of 3P Turbo, on August 31, 2016. This news added to the political turmoil rocking Brazil lately. Among recent events was the high-profile Petrobras corruption scandal that had ensnared Text some of the country’s biggest political and business leaders. The political crisis came in the midst of Brazil’s worst recession in at least two decades. As a country with economic growth tracked very closely to commodity prices, more so than any other nation in the world, the tumble of commodity prices and the Chinese economic slowdown had taken a toll on Brazil’s economy.1 The country was experiencing a high unemployment rate of 10.2 percent, with ten million people unemployed in 2016 compared to only seven million a year ago.2 This was compounded by high inflation and interest rates, and plummeting consumer spending. Its debt had also been downgraded to junk status. The country’s economic hardship had led thousands to protest on the street since the beginning of the year. Back in the United States, Jason Stacks had been contemplating setting up a facility to manufacture automobile turbochargers in the city of Itirapina, state of São Paulo, Brazil. He hadn’t been able to export aftermarket turbochargers to Brazil, as the country only allowed the import of two categories of used car parts: (1) parts for antique vehicles, and (2) the remanufactured parts from the original manufacturers of the vehicles.3 He had engaged with a consultant to gather some revenue and cost projections for the investment,