Supply chain cost
Table of Contents
Table of Contents 1
Executive Summary 2
Introduction 2
Investment Environment in China 3
PESTEL Analysis of Investment Environment in China 4 1 Political Factors 4 2 Economic Factors 5 3 Social-cultural Factors 6 4 Technological Factors 7 5 Environmental Factors 7 6 Legal Factors 8
PESTEL Analysis of Investment Environment in Japan 8 1 Political Factors 8 2 Economic Factors 9 3 Socio-Cultural Factors 10 4 Technological Factors 10 5 Environmental Factors 10 6 Legal Factors 11
International Strategies Recommended 11
International Strategy for Investing in China 11
International Strategy for Investing in Japan 12
Determination of the Most Suitable Country to Invest in 12
Conclusion 13
Reference 14
Executive Summary
This report is mainly to determine the most appropriate country for a “foreign direct investment (FDI)” of ABC Company. This report chooses from China and Japan as two alternative options for ABC Company’s FDI and analyzes the investment environment so as to understand the advantages and disadvantages of investing in the two countries. It also identifies the most suitable international strategy for entering the foreign market. ABC Company is a large British Manufacturer. Due to the economic downturn in Euro area after the international financial crisis, demand growth has become very slow during the recent years (IMF, 2013). Thus, ABC Company is planning to launch its international strategy in order to increase its overall profitability by entering into foreign markets. As with ABC Company’s FDI destination, it focuses on two countries, namely China and Japan. China is the largest developing country in the world which has been experiencing rapid economic growth for a long time, while Japan is a country famous for its manufacturing industry products, ABC Company can only choose one country to invest in. In order to make the right choice, both FDI destinations are analyzed
Table of Contents 1
Executive Summary 2
Introduction 2
Investment Environment in China 3
PESTEL Analysis of Investment Environment in China 4 1 Political Factors 4 2 Economic Factors 5 3 Social-cultural Factors 6 4 Technological Factors 7 5 Environmental Factors 7 6 Legal Factors 8
PESTEL Analysis of Investment Environment in Japan 8 1 Political Factors 8 2 Economic Factors 9 3 Socio-Cultural Factors 10 4 Technological Factors 10 5 Environmental Factors 10 6 Legal Factors 11
International Strategies Recommended 11
International Strategy for Investing in China 11
International Strategy for Investing in Japan 12
Determination of the Most Suitable Country to Invest in 12
Conclusion 13
Reference 14
Executive Summary
This report is mainly to determine the most appropriate country for a “foreign direct investment (FDI)” of ABC Company. This report chooses from China and Japan as two alternative options for ABC Company’s FDI and analyzes the investment environment so as to understand the advantages and disadvantages of investing in the two countries. It also identifies the most suitable international strategy for entering the foreign market. ABC Company is a large British Manufacturer. Due to the economic downturn in Euro area after the international financial crisis, demand growth has become very slow during the recent years (IMF, 2013). Thus, ABC Company is planning to launch its international strategy in order to increase its overall profitability by entering into foreign markets. As with ABC Company’s FDI destination, it focuses on two countries, namely China and Japan. China is the largest developing country in the world which has been experiencing rapid economic growth for a long time, while Japan is a country famous for its manufacturing industry products, ABC Company can only choose one country to invest in. In order to make the right choice, both FDI destinations are analyzed