You are a partner of a high-tech company in Portland, Oregon. Currently, your company is looking for a manufacturing site. You’ve considered Vietnam, Malaysia and Singapore as potential sites; it behooves your company to conduct country risk assessment (CRA) for Vietnam, Malaysia and Singapore.
CRA is a screening tool that let you know which country to avoid doing business with due to the high risks it poses. Geringer et al. (chapter 6, 6-4) group the risks into political, financial and legal. See picture #1.
Other methods/frameworks that you can use to assess the risk viability are PESTEL and CAGE. PESTEL is short for Politics, Economic, Socio-cultural, Technology, Environmental and Legal. CAGE is an acronym for Cultural distance, Administrative distance, Geographical distance and Economic distance. Read the OER textbook, chapter 8, International Expansion and Global Market Opportunity Assessment on the PESTEL and CAGE frameworks for detail explanations.
For this assignment, you’ll need to select your criteria and explain why those factors may affect your business. Which country presents the least risk possible based on your criteria (see picture #2)? Deciding on what criteria is up to you and your partner and your business needs; this is part of the assignment.
Compare and analyze these criteria for the countries, Vietnam, Malaysia and Singapore.
Prepare a report that you will share with your partner and your board of directors. Your report needs to include introduction, countries’ analysis and recommendations. It may also include relevant charts and images.
Putting-together your report professionally is part of the assignment.
How long should it be? It depends on your findings and analysis; the total pages should be around 8 to 10 pages maximum (double space, 12 font size). Charts, images and maps that are included should add value and meaning to your report.
At least 4 credible sources are required and cited in the MLA format.