Professional Documents
Culture Documents
POLITICAL FACTORS
Form and stability of government Attitude toward private and foreign investment by government, customers, and competition Practice of favored versus neutral treatment for state industries Degree of antiforeign discrimination.
GEOGRAPHIC FACTORS
Efficiency of transport (railways, waterways, highways) Proximity of site to export markets Availability of local material Availability of power, water, gas
LABOR FACTORS
Availability of managerial, technical, and office personnel able to speak the language of the parent company Degree of skill and discipline at all levels Presence or absence of militant or communist-dominated unions. Degree and nature of labor voice in management
TAX FACTORS
Tax-rate trends (Corporate & personnel income, capital, withholding, turnover, excise, payroll, capital gains, customs, and other indirect and local taxes) Joint tax treaties with home country, and others Duty and tax drawbacks when imported goods are exported Availability of tariff protection.
BUSINESS FACTORS
State of marketing and distribution system Normal profit margins in the firms industry Competitive situation in the firms industry; do cartels exist? Availability of amenities for expatriate executives and their families.
High
Global Strategy
Coordination of activities
Country-centered strategy by multinationals with a number of domestic firms operating in only one country Export-based strategy with centralized marketing
Low
Geographically dispersed
Geographically concentrated
Location of activities
Product Diversity
Licensing/Contract Manufacturing
Joint Venture
Foreign Branch
Export
Licensing/Contract Manufacturing
Joint Venture
High