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Choice of countries

Western firms should consider several factors when deciding how to enter a market in Asia Pacific: its overall attractiveness; costs; their own ability to enter and develop the resources, assets and competencies needed in good time; government requirements; the competitive situation; political and operational risks. A firm will choose its country (or countries) of operations based on the attractiveness of:

its market: in terms of size, growth rate, segmentation, sophistication of demand, intensity and nature of competition;

its resources: the availability, quality and cost of raw materials; the costs, productivity and attitude of labour; supplier networks; quality of information; financing; infrastructure; logistics;

political and monetary stability, regulations, price and exchange controls.

While political and economic developments make some countries more popul with Western firms, conditions should obviously be assessed industry by industry. Ea company must design its own criteria. This assessment is frequently made in two stel first an evaluation of the political and regulatory climate (this is known as country-ri; analysis); then a business analysis covering both market and resources for sped projects.

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