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Establishing a Greenfield in an International Market

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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.

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Solution Summary

This paper compares and contrasts a member of the European Union (France) and a self governing country (Mexico) not associated with the EU, to determine which country is better suited for a Greenfield expansion. This comparative analysis takes into consideration both countries': trade policies, economic backgrounds, social and cultural differences, currencies and current political situation. The author understands that these factors are not all inclusive, but also recognizes that they exercise great importance when considering a Greenfield expansion abroad.

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