Question

You are a senior manager at a U.S. automobile company investing in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? Why?

Answer 1

Answer:

In general, China, Russia and Germany are three big countries; the automobile company will get benefits if it chooses any of the three countries, but it also faces some challenges. It is well known in Germany that the automobile industry is very powerful. If the company chooses to invest in Germany, it will face numerous competitors. Also, in Russia, the trade barriers will be obstacles for the entry of the automobile company. However, with China's low cost labor and large potential domestic market make it an attractive destination for the direct foreign investment.

Explanation: