Question

Please provide Cage framework for Foxconn emphasising the importance of cultural, administrative, geographical and economic distance comparing Taiwan & the United States of America.

Answer 1

Following is the Cage framework for Foxconn emphasising the importance of cultural,administrative ,geographical and economic distance between Taiwan and US.

Analysing the Cage framework for Foxconn , we can say that major distance between Taiwan and US is the cultural and Economic distance.

Implication of cultural distance for Foxconn : US is better in ease of doing business because of its egalitarian organizational structure. But, the problem is that US is rules abiding while Taiwan is not. This has greater implications on Foxconn's expansion plans in US and setting up a plant their as US would want Foxconn to comply US rules of reducing pollution.But, Taiwanese culture of being easy on rules, Foxconn will have to face serious consequences.

Implications of Economic distance for Foxconn : While US is adopting reindustrialization strategy, it would be difficult for Foxconn to expand its manufacturing base in US. Also US is major customer in electronics segment,but setting up its own plants has impacted Foxconn's products demand in US. China is also major problematic player because China has great influence on Taiwan and major portion of electronic parts in US are sourced from China .