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Determine whether these infrastructures and the availability of natural resources pose challenges or opportunities to Acer.... explain why.

Infrastructures and Natural Resources

Globalization continues to be a growing trend and there are several vital elements that require thorough research and consideration before companies decide to expand to other countries. A continual knowledge of infrastructure and natural resources, available in countries of current operations, is also a necessity. This paper will serve to inform the reader of the global electronics manufacturer Acer's current access to existing infrastructures and natural resources within Taiwan, its home market, and within India, a country Acer is currently expanding operations to. It will be determined whether these infrastructures and the availability of natural resources pose challenges or opportunities to Acer.

India's Natural Resources

India has a wide array of natural resources used primarily for industrial manufacturing and power production. The Murthy (1996) website states that, "The main natural resources of India are iron ore, bauxite (aluminum), mica, and copper ore" (Natural Resources, paragraph 1). Gold, silver, and diamonds also account for a small percentage of natural resources available in India. The natural resources iron ore and mica are very important industrial resources. Murthy (1996) also states that "India is one of the major producers of iron in the world and iron ore is found all over India, with the major contributors being the states of Bihar and Orissa" (Natural Resources, paragraph 1). Mica is very important because it is used to manufacture insulating products for electronics. This resource is heavily used in the computer manufacturing industry and India has a very large supply of mica.

Most of the energy in India is generated from coal. Murthy (1996) states, â??It is estimated that India has around 120 billion tons of coal in reserve, enough to last for around 120 years, along with huge reserves of petroleum found off the coast of Maharashtra and Gujaratâ? (Natural Resources, paragraph 3). This amount of coal reserves ensures the industrial access to electricity for over a century to come. The coal reserves of India are an important aspect of availability of power to consider for companies considering expansion into India.

India has valuable natural resources that can be made available to companies operating within its borders. Mica, petroleum, and coal are all natural resources that are vital to the production of computers and are all readily available in India.

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Determine whether these infrastructures and the availability of natural resources pose challenges or opportunities to Acer.... explain why.

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The availability of raw materials in India for manufacturing computer products is certainly a major attraction or advantage for Acer to set up operations in India. The company will have cheap access to abundant raw materials in India for manufacturing its products. Further, India's liberal foreign direct investment policies, ...

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Sandeep Bardia, MBA
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  • MBA, Rochester Institute of Technology
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