Emerging Markets: Automobiles FDI in Brazil and Mexico case study
Business Finance
Read the Case Study “Emerging Markets: Automobiles FDI in Brazil and Mexico” and then answer the following questions:
1. What are the costs and benefits of FDI inflows for a host country such as Brazil and Mexico?
2. If you were an executive working for an emerging automaker from China or India, assuming your firm only has the ability to enter one Latin American country for the time being, which country would you recommend: Brazil or Mexico?
3. The automobile industry in both Brazil and Mexico is thriving. If you were a government official from an African country (such as Morocco, Nigeria, or South Africa) who has visited both countries and has been very impressed, which approach would you recommend to your own government interested in attracting FDI from global auto markets: the Brazilian approach or the Mexican approach? Why?
4.Consider the possibility that Mexico would like to reap some of the advantages Brazil enjoys from its version of Automobile FDI, while avoiding some of the disadvantages Brazil suffers. What changes in both Formal and Informal institutions would be necessary for Mexico to begin realizing increased domestic market consumption, complementary growth of domestically-owned suppliers, and alternative fuel adoption?
SHOULD BE A TOTAL OF 4 PAGES
