Question

What Asian countries would be best suited for companies in the scenarios given below? Give a brief explanation based on the pros of locating in a particular country.

a.        A company wants to have a low-cost English-language call center to handle problems with its products.

b.         A company wants to produce a low-price household item.

c.        A company wants to sell a new high-end flat screen TV.

d.        A company wants to engage in R&D in Asia.

e.        A company wants to enter China.

f.         A company wants a regional headquarters in Southeast Asia.

Answer 1

Ans.

a) India, because it has the second highest number of english speaking population of 125 million and huge population means a huge suppy of labour resulting in lower wages.

b) China, it has the best infrastructure for manufacturing of electronic items because of highle concentrated industry reducing cost of inputs and huge population ensures lower wages.

c) Singapore, with one of the highest per capita income in Asia, a high end TV could make a good sales in this scenario.

d) Israel, with highest spending of about 5% of the GDP, it can prove to be a good place for R & D.

e) China, it needs to enter a joint venture with a Chinese company to operate in China.

f) Singapore, with best ranking in ease of doing business and huge trade and investment makes it an attractive location for regional headquarters.

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