Problem: Analyse an emerging/developing economy and a developed economy as a possible site for a firm to establish a subsidiary. Your selection of economies is limited to the following choices:
- 'Emerging/Developing': Colombia
- 'Developed': Singapore
Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalize by establishing a subsidiary (office) in the host economy. Consider the following issues that would help you make such a business decision:
- In the context of political what are the advantages and disadvantages of investing in each economy?
The report should be a balanced consideration of the potential positive and negative aspects of each economy. Consider the opportunities and the risks for each economy. It should be a balanced consideration of the overall prospects for successful investment there.