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Essay / Research Paper Abstract
This 3-page paper attempts to answer the question as to whether Acer Group, manufacturer of PCs, should attempt FDI in China. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTacerchin.rtf
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Unformatted sample text from the term paper:
are the potential drawbacks versus the benefit of investment. Many companies and investors are asking these types of questions, especially as
it pertains to Mainland China (or the Peoples Republic of China). Once closed to globalization and investment, the PRC these days is welcoming to all kinds of foreign entities and
their investments. In fact, the nation has grown in wealth thanks to FDIs (Chung and Bruton, 2008). Despite Chinas open borders and huge market opportunities, however, its not necessarily a
slam-dunk decision to invest on the mainland. There are still many restrictions when it comes to FDI and China. This is especially the case if the company in question has
a business/commercial relationship with Chinese Formosa, better known these days as Taiwan. This is the problem that Acer Group faced in trying to determine whether it should establish operations in
the PRC. The Acer Group case provides background information on whether Acers Global Operations Centre for Manufacturing Operations should commence full-scale
operations on the Chinese mainland (Everatt, 1999). Acer, which introduced its Acer Basic II, a low-cost, multimedia PC for just under $1,000 in 1997 (Everatt, 1999). The Basic II was
initially slated to be introduced in Acers domestic market, then Greater Asia, mainland, China, followed by India, Russia and the United States (Everatt, 1999).
Acer also believed in the idea of thinking globally, yet acting locally, with the companys foreign market entry strategy involving joint venture formation to establish distribution systems,
as well as promotional activities in each local market (Everatt, 1999). The "local touch" was also developed by developing the product to fit the local market, trends, language, tastes and
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