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As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield (see text glossary for definition) production facility overseas. You have been asked to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in one of two selected foreign countries.
The steering committee has determined that one alternative must be a member of the European Union (EU) while the other cannot be a member of the EU. Subject to these conditions, you may choose any two foreign countries, except China, India, Czech Republic, and Romania for comparison.
Deliverable: There are many factors to consider in your comparative analysis. Please be sure to include, among other topics, a discussion of the different countries - currencies, trade policies and cultural variables that may affect operations and profitability in each country. Your report should conclude with a recommendation and supporting rationale as to which country should be selected for the new facility.© BrainMass Inc. brainmass.com October 2, 2020, 1:54 am ad1c9bdddf
Acme Greenfield Production Facility proposal
This paper presents an analysis of United Kingdom and United Arabs Emirates to determine the suitability and potential of the two countries for a Greenfield project. The analysis reviews the financial condition of each of the countries taking special note of their trading policies, currencies and cultural variables to determine the how the profitability of the project may be affected in both countries. After analysis it is recommended that the new facility be established in UAE.
A Greenfield production facility is a new production plant that is established where no other facilities existed before. This implies that the establishment of this green facility starts from nothing on a bare land. It will require new buildings, production facilities and labor force. This is unlike a Brownfield facility which is often established on what already existed (McCormick, 2000). Acme multinational enterprise is currently planning the expansion of its program by considering establishing a Greenfield facility in a foreign market. Policies regarding the establishment of such facilities differ from country to country and so the governing trade policies, cultural variable and currencies. This paper analyses the suitability of the United Kingdom, a member of the European Union and United Arabs Emirates, a non- EU member for the establishment of the Greenfield project.
The UK and United Arabs Emirates both presents markets that have advanced and are continually developing with a huge market base. The two countries are compared as shown below.
Market Size and competitiveness
The population in the United Kingdom is approximately 61 million (UK National Statistics, 2011) as compared to UAE population of 8.26 million (Emirates 24, 2011). The big population size offers a bigger market for products that will be produced ...
The solution discusses international financial markets for Acme, a U.S. MNE.