International Business

International Business

Part One of Plan

Eggasus is an egg shaped vehicle which is a personal transportation device with zero emission. The vehicle is test-derived on the American roads. It is designed for one passenger to move from place to place or building to building in an all-weather enclosed and comfortable way (Wind& Robertson, 1999). Since 25 years, the Eggasus team was involved with design of the vehicle, its engineering, construction, production of gas and electric. The main benefits of Eggasus are that it is energy efficient, practical, safe, comfortable, economical and low-carbon footprint. It is a three-wheeled scooter which can run up to 25mph with 50 miles per charge. The starting price of Eggasus is $5000. The manufacturing process for the Eggasus will be done in Australia (Preet and Masaaki, 1993). The headquarters for the Eggasus will be positioned in America. The Pilot markets for Eggasus are America, UK and Singapore. The potential markets for future Eggasus are planned to be Germany and New Zealand. For a global approach, it is required that the company of Eggasus goes through its internal resources, market analysis, competitiveness and market expectations (Kotabe and Helsen, 2004).

Part Two- why these countries were chosen?

Opportunities and Risks of Australia

The country's foreign direct investment (FDI) was not severely affected by the global slowdown in 2008 and 2009. Net FDI inflows in 2009 were $13.3bn compared to $15.1bn in 2008, and FDI into Australia grew by 7.5% to A$474bn ($436bn) in 2010. Australia's productivity level in R&D is still considerably below those of countries like the US, the UK, and several other OECD countries. During 2000-09, R&D expenditure did not show any signs of improvement, with the rate hovering around 1.5% of GDP. Low expenditure and an inadequate focus on R&D are two causes of the low level of productivity.

In the Wall Street Journal's 2011 Index of Economic Freedom, Australia was ranked as the third freest economy among 183 countries with a score of 82.5. The country was ranked third in the Asia Pacific region from 41 countries. Australia was rated highly on almost all measures of economic freedom, except fiscal freedom and government spending, where it got values of 61.3 and 64.7, respectively. According to the index, financial steadiness and directness to worldwide business support a marketing-principle based globally competitive investment and financial environment. This indicates that an improvement in fiscal freedom and government spending in the country could help to enhance and expand economic activity (Kendrick, 2006).

According to the World Bank's Doing Business 2011 rankings, the country was ranked 10th among 183 countries. Moreover, Australia was ranked as the second easiest country in which to start a business, after New Zealand. The 2011 indicator shows that the number of days required to start a company in Australia was two, compared to the OECD average of 5.6. The starting business indicator also indicates efficiency and highlights the hassle-free business environment. Although there are a number of policies in place, the government is finding it difficult to control ...