Here Comes the Competition
1.Is Europe likely to be a good area for direct investment during the years ahead? Answer: No, Europe is not likely to be a good area for direct investment because the money that has been invested in Europe is over high and also recently, Europe economic is going down. In my opinion If the company would like to do business or investment in Europe. It would be much better to looking for another place such as Asia , Africa , South America because the cost of goods sold , cost of production , cost of living , labor cost are not as over high as in Europe.
2. Why is so much foreign money being invested in U.S. manufacturing? Based on your conclusions, what advice would be in order for the conglomerate? Answer: When investors evaluate whether a country is good to invest or not, there are some factors to be considered such as market size, market growth and market consumption capacity, country risk and etc. The U.S. has absolute top ranking or advantage on market size, market growth and market consumption capacity, country risk. Therefore, the US there is so much foreign money has being invested in U.S. manufacturing. In conclusion, I would advise conglomerate to acquire a company in the U.S. instead of in Europe base on the above info.
3. If the conglomerate currently does not do business in Europe, what types of problems is it likely to face? Answer: If the conglomerate currently does not do business in Europe ,they will face more strong competitors from the US and Europe companies . These company may affect risk more than another companies and difficult to be the leader in a world market.