Question

You plan to expand consumer electronics and auto mobiles into 2 countries oustside the USA. Both countries of expansion must be part of some economically integrated group/union, and they cannot be the same group/union. Relying on the high tech merchandise products you selected, what is your strategy for entering into countries you chose for expansion?

Answer 1

Expansion into automobiles, and, consumer electronics

Europe

• Expanding into a struggling industry
• Finding a way to build efficient, and, vehicles
• Separating from competitors through the use of innovation, and, marketing
• In cooperation with the global network, we offer resources & expertise for solving logistics issues
• Clusters form a significant model of business
• Weigh the risk costs and benefits
• Intra-industry trade is due to economies of scale, and, liking of variety
• The US can trade with countries that run a trade surplus
• Comparative advantage determines the pattern

UAE

Automobiles

• There are few barriers to automotive exports to UAE; automotive production in UAE is negligible
• The country accepts vehicles, and, parts produced to US standards
• Few homologation changes are needed prior to exports
• SUVs, and, larger vehicles are popular
• US manufacturers are leading suppliers of suspension parts, and, transmissions

Consumer Electronics

• UAE is a major re-exporter, and, importer of electronics
• Hypermarkets are the dominant players; e-commerce contributes 19 percent
• Working expats get major a share of the inflation-adjusted salaries
• Consumers are more comfortable buying from brick, and, mortar stores