Acme (Greenfield)

Intro

Acme is presently in the developing stages of launching a Greenfield production facility in foreign markets. The services of this consultant have been retained to contrast the pros and cons of launching such operations into foreign territory and submit a recommending proposal to the steering committee supporting my decision. The proposal will have two alternatives in which one option will consist of a European Union (EU) country (France) and the second alternative will consist of a non European Union country (India).

Background

In 1957 after World War II, the Treaty of Rome was established and implemented creating the European Economic Community (EEC). In the beginning, six European countries was part of the EEC which consisted of Belgium, Germany, France, Italy, Luxembourg and the Netherlands. A year later, the European Community (EC) was formed to foster compromise and trade amongst the participating countries. Again, the countries that were part of the EC were West Germany, Belgium, France, Italy, Luxembourg and the Netherlands. In 1993, the European Union was established by the members of the European Community which now consist of Latvia, the United Kingdom, Austria, Sweden, Czech Republic, Denmark, Finland, Estonia, Belgium, Slovakia, Greece, Poland, Cyprus, Slovenia, Hungary, Germany, Italy, Malta, France, Spain, Bulgaria, Luxembourg, Portugal, Ireland, Lithuania, Romania, and The Netherlands.

To meet the criteria for membership into the EU, the prospective country must have democratic and constitutional order in addition to protecting human rights, and respecting minorities and providing protection for them. With this being said, France joined the EU upon its development. In recent years, India has become one of the fastest growing economies due to its large population and prospective growth potential in addition to its per capita income.

When looking at the needs of Acme, India has more to offer than France because of the following criteria:

Ð'* Larger Market: India has a larger population compared to France in addition to a growing market demand mainly because of growing GDP, and per capita income. Also, India's location proves to be more advantageous because of its location in Southeast Asia and its neighboring countries.

Ð'* Trade Policies: India's government is more favorable when compared to France. India's largest trading partner is the United States which makes it easier to do business with when compared to France.

Ð'* Comparative Advantage: India has cheap highly skilled laborers which will keep operating costs minimal when establishing manufacturing facilities when compared to France.

Ð'* Cultural Variables: India is