Russia, Germany, China -which country is best choice of U.S automobile company investment?
Russia, Germany, China -which country is best choice of U.S automobile company investment?
Executive Summary
This report will deeply analyze the benefits, costs and risks associated with doing business in China, Russia and Germany. Through comprehensive evaluation the three countries’ macro environment, it deems China is the most attractive target for foreign direct investment. It is sure that China is an emerging market which has great potential demand for automobile products. Therefore, the automobile company should consider investing in China if it wants to enlarge its business.
1. Introduction
In recent years, with the development of economics, the demand to automobile has increased quickly in the world. It is the opportunity for automobile companies. In general, China, Russia and Germany are three big countries; the automobile company will get benefit if it chooses to any country of the three, but it also face some challenges. It is well known in Germany, the automobile industry is very powerful, if the company chooses to invest in Germany, it needs to face numerous competitors. Also, in Russia, the trade barriers will obstacle the entry of automobile company. For China, the economic condition is weaker than Russia and Germany; automobile is a luxury product for lots of people. Therefore, the company needs to comprehensively consider the benefits and risks if it wants to invest in a new market. This report will combine the macro environment to discuss the benefits, cost and risks if the company entry into the three countries and give the conclusion.
2. Core content
2.1.1Benefits investment in Germany
It is well known the automobile production technology in Germany is in the leading level all over the world (Martin, Mitchell, Swaminathan, 1995) it means that Germany automotive firm owned comparative advantage. If investment in Germany would be successful, their wills
Executive Summary
This report will deeply analyze the benefits, costs and risks associated with doing business in China, Russia and Germany. Through comprehensive evaluation the three countries’ macro environment, it deems China is the most attractive target for foreign direct investment. It is sure that China is an emerging market which has great potential demand for automobile products. Therefore, the automobile company should consider investing in China if it wants to enlarge its business.
1. Introduction
In recent years, with the development of economics, the demand to automobile has increased quickly in the world. It is the opportunity for automobile companies. In general, China, Russia and Germany are three big countries; the automobile company will get benefit if it chooses to any country of the three, but it also face some challenges. It is well known in Germany, the automobile industry is very powerful, if the company chooses to invest in Germany, it needs to face numerous competitors. Also, in Russia, the trade barriers will obstacle the entry of automobile company. For China, the economic condition is weaker than Russia and Germany; automobile is a luxury product for lots of people. Therefore, the company needs to comprehensively consider the benefits and risks if it wants to invest in a new market. This report will combine the macro environment to discuss the benefits, cost and risks if the company entry into the three countries and give the conclusion.
2. Core content
2.1.1Benefits investment in Germany
It is well known the automobile production technology in Germany is in the leading level all over the world (Martin, Mitchell, Swaminathan, 1995) it means that Germany automotive firm owned comparative advantage. If investment in Germany would be successful, their wills
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