Bertos Manufacturing Corporation (BMC) is one of the largest companies of the country in the manufacturing of construction and mining equipment, and engines.
This case deals with the key considerations when planning an international expansion through direct investment in foreign markets. These considerations must be addressed by a finance company seeking to support the international sales of its parent firm, a U.S.-based multinational enterprise (MNE).Bertos Manufacturing Corporation (BMC) already operates three foreign subsidiaries–in Canada, Mexico (both NAFTA members), and the United Kingdom–but wishes to increase its international presence further through entry into additional markets.
The question is:
Which countries would be unsuitable for immediate establishment of a BFSI company at this time, and what are the basic shortcomings in each case?
The answer is:
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