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What costs and benefits do US-based Ford and British companies experience as a result of FDI...

What costs and benefits do US-based Ford and British companies experience as a result of FDI in Thailand?

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Answer #1

The costs faced by these companies are as follows:

1. Fixed cost and variable cost being incurred as a part of FDI in the country of Thailand

2. Cost incurred in conducting research and understanding the market in Thailand

3. Cost incurred due to possible tariff upon the products imported to their countries

4. Lost revenue as a cost as some customers in the domestic market go against these companies

The benefits incurred by these companies are as follows:

1. Increased market presence and gain of the market share in the market of Thailand

2. Benefits in terms of the access to the markets in neighboring countries such as India and China

3. Brand building and positive product positioning among the consumers

4. Benefits of market diversification to nullify the slow down in other markets.

5. Profits generated from the sales in the market of Thailand

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