As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield production facility overseas. You have...

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As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield production facility overseas.


You have been asked to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in one of two selected foreign countries.


The steering committee has determined that one alternative must be a member of the European Union (EU) while the other cannot be a member of the EU. Subject to these conditions, you may choose any two foreign countries, except China, India, Czech Republic, and Romania for comparison.


Deliverable: There are many factors to consider in your comparative analysis. Please be sure to include, among other topics, a discussion of the different countries’ currencies, trade policies and cultural variables that may affect operations and profitability in each country. Your report should conclude with a recommendation and supporting rationale as to which country should be selected for the new facility.



Deliverable Length:3-5 pages



Answered Same DayDec 22, 2021

Answer To: As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is...

David answered on Dec 22 2021
132 Votes
ACME, A U.S. MULTINATIONAL ENTERPRISE (MNE)
Let us assume that Acme, a U.S. multinational enterprise (MNE) is engaged in a business
which manufactures technological engineering products
and the company sells them in the
global market. At present, the company is manufacturing the products in U.S.A and sells
them in the international market. Because of the globalization and increased competition, the
company wants to have a good margin on the products and meet the customer expectations.
Being a multinational company, the company could establish its presence in the developed
economies and has recently stepped into the developing countries. The company is planning
to start a green field production in foreign countries to scale up its business. In view of the
opportunities, the company wants to set up a plant on plant in one of the countries of the
European Union and another plant in Non-European Counties.
We have selected France (From the European Union) as the country (Rosenberg) for
investment, where Acme will set up its Greenfield production. Reason being France as a
country has multinational companies who will be using the products of the company for their
requirement purposes. Once the production unit is set in France, the company could improve
its customer base in France and would become hub to supply to entire western countries from
there. The transportation and communication facilities are convenient and the company could
capitalize the opportunity of selling its products in this market. Following are the reasons for
setting up the Green Field Production unit in France (Kuepper, 2013).
(i) France is the world’s 5th largest economy and there are closely 40 companies
which are established in France out of the total 500 fortune companies. The
country attracts more investments because of presence of largest cosmetic,...
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