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International Business



International Business

Introduction

The company chosen for this paper is Boba Coffee which makes its manufacturing in local basis. Also, Boba Coffee has no foreign manufacturing or vendors.

Part 1: Attractiveness of foreign countries

According to the FDI Confidence Index 2012, the 5 countries chosen from the top 25 countries are China, India, Singapore, Australia and United Kingdom (atkearney.com). The following are the key strengths for investing in these countries and the reasons are mentioned as follows as well.

China

Foreign investments have been a driving force in China's rapid economic growth. China encourages foreign companies to invest in advanced manufacturing, energy conservation, environmental protection, and modern services. China received $69.5bn in FDI in 2006, making the country one of the largest receivers of FDI in the world. In 2007, FDI was primarily directed to the manufacturing, real-estate, and service sectors. This made the country a favorite destination for many foreign companies. China received FDI of $95.0bn in 2009 compared, to $108.0bn in the previous year. The Chinese government is expected to initiate measures to ensure that the country remains a favorable destination for FDI. FDI started pouring into the country in 1992, and China continues to be a favorite destination for FDI inflow. FDI to China reached $72bn in 2006, from a level of $30bn in 2000. Investment into the service sector reached $38.12bn in 2008, representing a jump of 24.23% compared to 2007. The flow of FDI into the country went down to $95bn in 2009 from $108bn in 2008 (atkearney.com).

India

India's economic growth story is mainly driven by its services sector, which accounts for more than half of India's output despite contributing less than one-third of its workforce. FDI inflows into the country during 2009 totaled around $33.1bn. However, in 2010 a steep decline of 29% was experienced, with inflows dropping to $23.3bn. This was believed to be the result of global factors.

While India continues to have tight regulatory norms, there has been a significant relaxation in regulations related to FDI since the liberalization process of 1991. However, it is still considered to be over-regulated compared to international standards. According to the UNCTAD World Investment Prospects Survey 2009-12, India ranked second in terms of global FDI in 2010, and is ranked among the top five investment destinations during 2010-12 (atkearney.com).

According to the United Nations Conference on Trade and Development's World Investment Prospects Survey 2009-2012, India ranked second in terms of global FDI in 2010, and expected to rank among the top five investment destinations to be during 2010-12. Net FDI flows (net inward FDI minus net outward FDI) amounted to $7.1bn in 2010 compared to $18.7bn in 2009.

Singapore

Several factors make Singapore a favored destination for business investment. According to the World Bank's 2011 Doing Business report, Singapore ranked first in the world out of 183 nations in terms of ease of doing business. The country also ranks first in the world in terms of trading across borders. Singapore's pro-business policies are expected to continue to attract foreign investment ...