Invest in building a greenfield automobile assembly facility in Costa Rica with a local partner.
The global automaker you work for, has decided to invest in building a greenfield automobile assembly facility in Costa Rica with a local partner.
Which FDI theory presented in this chapter might explain your company’s decision?
in what areas might your company want to exercise control, and in what areas might it code control to the partner? Be specific.
Answer preview:
Rays Company deals in automobile and to set up a Greenfield automobile assembly in Costa Rica through partnering with the local company. The company intends to buy assets from the local business to help them gain control. The company has focused on purchasing a majority of the assets in the foreign country and assumed all the management activities. The foreign direct investment approach adopted would include buying and setting of new plant and equipment
Words:368