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Administrative Studies
ADMS 2610
Rebecca Jubis

( b ) Country Analysis • Factors considered in country selection • Justification for selection of specific target countries ( d ) Plant Location and Capacity Analysis • Justification for plant location in Latin America (if applicable) • Justification for capacity decision(if applicable) • Discussion of factors such as shipping costs, duties and tariffs in the plant location decision (if applicable). P. 10 from country manger pdf. • Detailed analysis of the decision NOT to establish a plant in Latin America (if applicable) l higher risks (less stable economic climates (income, employment, prices, development, transportation, technology, telecommunications, stable banking, convertibility of currency, protection of Intellectual Property Rights, enforceability of contracts, and transparency in the legal system (government agencies&systems, laws and ordinances, huge foreign indebtedness, unstable governments, foreign exchange problems, foreign government entry requirements, tariffs and other trade barriers, corruption, bureaucracy, technological pirating and high cost of product and communication adaptation ) are compensated for by higher returns, largely because competition is often less intense in those markets. Consequently, companies need to balance the opportunity for future growth in the developing nations with the existence of higher risk. l Cheap labour l Latin America is a region of great potential. With a population of approximately 450 million, the region represents a population that is 50 percent larger than that of the United States and Canada. l For example, Mexico was signatory of the NAFTA agreement, along with the United States and Canada. This agreement reduces trade barriers among the three countries and has encouraged a variety of companies to establish produ
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