Successful FDI
MNE: A Business Plan for Successful FDI
The MNE
For this paper, the MNE will be a company that originates in the United States, but that is considering FDI in Thailand. The company manufactures a snack product that is popular in the U.S. market, but has not been tested in other (particularly Asian) markets at all. This does not mean the product will not do well there, but there is not much research into the suspected success of the product. Nevertheless, the company is forging ahead with Thailand plans. This is noteworthy, because FDI is a complicated process that requires much study and thought (Calderon, Loayza, & Serven, 2004; Ho, 1998). Development in the third world is changing, and so is development in countries that are relatively well-established but that still have some trouble competing when it comes to comparison with countries like the United States (Ho, 1998; Ghemawat, 1986).
In order to be successful, the MNE must be able to move its operation to Thailand or open up operations there that perform well and are a complement to what is seen in the U.S. If the MNE is successful in doing that, there can be benefits for the company and for the host country. Whether the home country will lose out based on jobs sent overseas and other factors is also something that remains to be seen. Many times, the company that sends operations overseas ends up cutting U.S. production to the point that many jobs are lost (Wu, et al., 2002). Still, this is not always the case. Sometimes a company simply needs something to supplement its U.S. base, so it can continue to provide high-quality goods at a fair price. This is the hope with the proposed MNE and its fictional snack product, because that would keep the company from giving away too many U.S. jobs.
Business Plan for the MNE
A successful business plan is one that is designed to protect against as many eventualities as possible. However, no business plan is 100% complete because there are always potential problems that can appear without warning (Porter, 1979). Despite the risk of problems, a business plan for the MNE should be...
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