XYZ Investment Limited is a company based in the U.S. that specializes in manufacturing corn flakes. After several years of producing in the U.S., XYZ Investment Limited now wants to establish a new manufacturing plant abroad in an attempt to take advantage of varied factors that contribute towards lowered production costs. The selected overseas location is India, which is a nation situated in the southern part of Asia.
In this paper, the suitability of India as a target location for XYZ Investment Limited’s new manufacturing plant will be assessed in detail
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The factors determining the country's productivity
- Technical Influences
- Managerial Factors
- Natural Factors
- How the country's policies influence its productivity growth
- How the country's financial system is related to key macroeconomic variables
- How your organization can reduce the risk it is likely to face in relocating
- The current and projected unemployment over the next five years
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper assesses the suitability of India as a location for XYZ Investment Limited's new manufacturing plant. The paper analyzes various factors that contribute to lowered production costs in India, including productivity, policy influences, financial system, and potential risks.
- Factors determining productivity in India
- Impact of policies on productivity growth
- Relationship between the Indian financial system and key macroeconomic variables
- Risk mitigation strategies for relocating to India
- Current and projected unemployment rates in India
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces XYZ Investment Limited, its business operations, and the rationale for establishing a new manufacturing plant in India.
- The factors determining the country's productivity: This chapter examines the key factors driving productivity in India, including technological advancements, managerial practices, and natural resource availability.
- How the country's policies influence its productivity growth: This chapter explores the impact of India's free trade policy and monetary policy on productivity growth.
- How the country's financial system is related to key macroeconomic variables: This chapter examines the structure of the Indian financial system and its relationship with crucial macroeconomic variables, highlighting the roles of primary and secondary markets.
- How your organization can reduce the risk it is likely to face in relocating: This chapter discusses potential risks associated with relocating to India, including financial, regulatory, and political risks, and outlines strategies for mitigating these risks.
Schlüsselwörter (Keywords)
The main focus of the paper is on the factors determining the country's productivity, the influence of government policies on productivity growth, the relationship between the financial system and key macroeconomic variables, and the risks and opportunities associated with relocating to India. Key terms and concepts include technological integration, managerial practices, free trade policy, monetary policy, primary and secondary markets, and risk mitigation strategies.
Frequently Asked Questions
Why is India an attractive location for manufacturing plants?
India offers varied factors that contribute to lowered production costs, including a large labor pool, technological advancements, and specific government policies.
What are the technical influences on India's productivity?
Productivity is driven by the integration of new technologies, infrastructure development, and the adoption of modern manufacturing processes.
How does India's monetary policy affect foreign investments?
The country's policies influence productivity growth and financial stability, which are key macroeconomic variables for international organizations like XYZ Investment Limited.
What risks should a company consider when relocating to India?
Potential risks include financial volatility, regulatory changes, and political factors that might affect the long-term stability of the manufacturing plant.
How can an organization mitigate relocation risks in India?
Strategies include thorough market research, understanding the local financial system (primary and secondary markets), and aligning with local trade policies.
- Quote paper
- Charles Maina (Author), 2017, The Real Economy in the Long Run. India as a Target Location, Munich, GRIN Verlag, https://www.grin.com/document/377761
