The organization that you work for is currently in the process of setting up a production facility overseas. You have been asked to present a proposal comparing the risks and benefits of starting operations in two foreign countries.
For this assignment you may choose any two foreign countries for comparison. Use your text and the web to locate information on the types of risk and the background on the two countries. In this proposal you will provide a recommendation as to which country should be selected for the project.
Korea offers one of the most attractive production bases among emerging economies in terms of the availability of skilled labor and research and development ability, but the country's infrastructure and wage level are less competitive.
According to the Korea International Trade Association July 15, a study by Nova Research AG, a private consulting agency for multinational corporations, has discovered that Korea offered the highest availability of skilled labor with high levels of education among 25 emerging markets - including Singapore, China, India, Hungary, Mexico and Israel.
Korea's research and development index, which reflects its per-capita R&D spending and its number of global patent filings, was the third highest among the emerging economies. The country's government-sector index measuring macroeconomic stability, market openness and the level of corruption also ranked third.
But Korea's infrastructure and the level of wages were found less appealing to multinational companies, ranking ninth and 16th among the 25 economies.
The nation had a reasonable comparative advantage in the electronics industry, ranking fifth after the Philippines, Malaysia, Singapore and Thailand. However, its other major industries - such as textiles, automobiles, chemicals and machinery - ranked somewhere between eighth and 14th.
By comparison, Singapore was among the top five in assessment categories such as... Continue Reading