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Establishing a New Production Facility |
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In today's global economy, it is not uncommon for companies to manufacture goods in one country for sale in other countries. This research considers an auto parts manufacturer seeking to establish a new production facility. Malaysia and India are both under consideration, and three key factors will be taken into account: wage and price controls, property rights, and government regulations affecting business. The Indian government participates in wage and price controls, and price subsidies are particularly common in the agricultural sector, but rare in other sectors. There is a minimum wage in India, which also has a highly skilled and educated workforce. Companies must obtain government permission when laying off more than 100 workers, but such permission is generally easily granted. There is legislation pending which would set the threshold for this permission at 1,000 workers ("India," 2002).
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Category: Foreign - E
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PROPERTY RIGHTS, CONTROLS Indian, India Approvals, RECOMMENDATION Based, India Despite, REGULATIONS Setting, , Social Security, Malaysia Foreign, Malaysia India, property rights, india 2002, malaysia 2002, price controls, wage price controls, wage price, fy 2002 2002, country commercial, malaysian government, seeks foreign, commercial guide fy, foreign direct, 2002 2002 washington, guide fy 2002, direct investment,
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