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Expanding Globally

In: Business and Management

Submitted By jessi2000
Words 8704
Pages 35
Executive Summary
Feltex Carpets Ltd. is the largest Australian carpet manufacturer. The company has experiences in internationalization in countries such as USA, Japan, Southeast Asia and New Zealand. However, the company is interested in expanding their market power to new destinations, to improve their multinational strategy and to be well-known worldwide.
The countries of potential choice are Mexico and Chile. The analysis has been done by comparing the overall information and in-details of each indicator.
From evaluation of indicators of both countries, such as economic, social, legal and infrastructure, the analysis has shown that the economy of both countries are quite similar. However, the infrastructure, technological and legal environment seem to be better in Chile. As the Chilean government support the foreign investment in textile sector by promoting the education, technological development and the special policy especially for textile. For instance, tax reduction and promoting education in labour forces. Thus, Chilean labour forces would have the better off in comparison with Mexican labour forces.
Another highlighted indicator in the country comparison - which the recommendation has inclined - is infrastructures. Both countries have the similar relative figures in number of infrastructure such as roadway, waterway and airports. But the infrastructure of electricity and internet/telephone networks seems to be at a higher level in Chile.
The analysis of relevant regulations which affect Feltex’ direct investment in Chile shows that the company can gain a huge amount of benefits from the high integration in the international trading and investment framework. Chile is a member of the WTO and has signed several bilateral and regional free trade agreements. The country offers a welcoming investment climate for foreign investors. On the other hand

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