Global Management

Opening a New Factory

Your firm is considering to open a new factory via direct investment in Latin America and management is evaluating the specific country locations for this project. The pool of candidate countries has been narrowed to Honduras, Chile, and Mexico.

• Discuss the national differences in political economy between these three countries.
• Discuss any cultural barriers your firm may experience in each of the three countries.
• Find each country’s rating on the corruptions perceptions index (CPI).
• Click here to read the country commercial guides (CCGs) prepared by the U.S. Department of State. Based on the reading, compare the FDI climate and regulations of these three countries.

Based on your findings, prepare a 3- to 4-page Microsoft Word document addressing the above questions and making a recommendation to your firm as to which country would be the best choice for your new factory.