Question

Question 5: Let’s suppose you are working for a Pakistani firm in a Textile industry and majority of the customers are located in different parts of the world. Over the years the firm has made huge profits and now has decided to expand their business in Malaysia and Vietnam.

a) Malaysia: This is a country where government laws are very strict, infrastructure is better than an average developing country and local competition is low. The purpose of this expansion is to achieve cost reduction, capitalize on universal needs for their product and take advantage of Regional Economic Integration.



b) Vietnam: This is a country where government laws are not strict, bribes are considered normal, infrastructure is weak and competition is very high. The purpose of this expansion is not cost since cost of production is very low, raw material can be procured locally in host market

Requirement: You are required to analyze the situation of both countries based on the scenarios provided above and identify which strategy will be used based on integration-responsiveness framework and state your reasons why? Also suggest which organizational structure will be best suited for international operations and state your reasons as well. (10 Marks- Maximum Word Count 500)​

Answer 1

Answer:

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