Your team is a large U.S. corporation that manufactures rubber tires, and you
want to begin...

Question

Your team is a large U.S. corporation that manufactures rubber tires, and you 
want to begin manufacturing and distribution in another country. As a team, 
choose a country that you think you would want to start a manufacturing plant 
in. Each individual team member should pick out a role as chairman, 
vice-chairman, secretary, and treasurer. If there are more than 4 people on your 
team, double up on titles, but each team member should still submit an 
individual project.

Treasurer: Research and write on the following issues:

What competitive advantage does this country have?
What are some of the foreign trade issues you will have to deal with?
What are the determinants to foreign entry there, and how would you enter 
there?
You will be embarking on the international negotiation.

What are the 5 stages of negotiation, and how are you going to prepare for 
them?
What cultural differences do you need to be sensitive to in the 
process?
What would be some of the political, legal, economic, and ideological issues 
that may come up?
How would you manage conflict if it should come up in the negotiations?
What decision-making process would work better with the different cultures?

Inductive or deductive reasoning?
Is it a personal issue or a cultural issue?

David · Accepted Answer

The chosen country for expansion is China.  The recent trends in China’s growth in world trade 
and globalization have made expansion into China a very profitable prospect. The china market 
supports the manufacture of tires and the government has given a 12% subsidy to foreign 
companies that set up shop in the country. Recognizing that the raw material is available in 
plenty in south china, the tire manufacturing plant will combine the local advantages of cheap 
labor as well as the availability of raw material with the technical advantages of heavy 
machinery availability along with the necessary climate for growth all are the competitive 
advantages that the manufacturing unit will have in china. The greatest of competitive edges that 
the tire manufacturing unit will have is the hinterland and localization of all factors.  
The foreign trade issues that could arise in the setting up pf a manufacturing plant could be 
licenses and labor laws. Apart from that there could be transfer pricing rules applicable. There 
could also be foreign exchange regulations and ban of certain types of tire production. There 
could also be environmental issues and health and safety problems associated with foreign trade.

Your team is a large U.S. corporation that manufactures rubber tires, and you want to begin manufacturing and distribution in another country. As a team, choose a country that you think you would want...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment