FIN630 IP1

Apr 8th, 2015
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As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield (see text glossary for definition) production facility overseas. You have been asked to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in one of two selected foreign countries. The steering committee has determined that one alternative must be a member of the European Union (EU) while the other cannot be a member of the EU. Subject to these conditions, you may choose any two foreign countries, except China, India, Czech Republic, and Romania for comparison. Deliverable: There are many factors to consider in your comparative analysis. Please be sure to include, among other topics, a discussion of the different countries’ currencies, trade policies and cultural variables that may affect operations and profitability in each country. Your report should conclude with a recom

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FIN630-IP1NameClassDateProfessorFIN630-IP1 In this proposal to the steering committee a comparison of the advantages and disadvantages of starting operations for a Greenfield production facility overseas in Germany a country that is a member of the European Union or doing business with Norway which is not a member of the European Union will be conducted to assess what international location to start production. Before doing business in the global market it is essential that the steering committee has the necessary information to make an informed decision. This includes understanding the potential risks and advantages of doing business with a country within the EU or one that is not a member of the EU. When doing business with a foreign country it is essential that the American organization understands the different business and cultural differences that exist, trade agreements, and different currencies. Germany is a member of the European Union and is currently a democratic country. The country has a population of 82 million citizens and the Basic Law forms the legal and political foundation of government (Brown, 2009). Germany has the fourth largest economy in the world and is a strong export nation. Goods created and services provided in Germany are guaranteed to be of good quality and the country is one of the worlds leaders in technological innovations. In Germany doing business is a more formal process that doing business

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