Question and Case Analysis - Assignment Example

ing Aoki is manufacturing to China, Mexico, or Eastern Europe, the company must first carry out thorough scanning to understand the political and economic laws in these countries. China has religious law, which may not affect Aoki firm greatly in its operations. China and Mexico do have a mixed economy where both government intervention and market mechanisms operate. The Chinese government encourages foreign investors as compared to Mexico and Eastern Europe states. In Mexico, businesses are marred with violence thus discouraging investments.

Nonetheless, there is socialism system of government in some parts of Eastern Europe such as Russia that controls all economic and political matters. Most of the businesses bribe to acquire important documents such as licenses and there are increased crimes and killings that involve seizing of individual businesses. Russia and some countries in Eastern Europe do not have a strong antipiracy law hence may weaken the business by manufacturing fake glasses as the ones manufactured by Aoki firm. Aoki Company should therefore consider manufacturing in China than in Mexico and Eastern Europe.

Aoki’s decision to sell its products to Latin America and Europe is welcomed due to political stability in these regions that comprises deeper application of civil law. There are also good quality infrastructures such as communication that may help in doing business. Furthermore, market forces are left to control trade hence democracy in trade and economic freedom. Aoki will be able to make economic decisions to facilitate its operations thus maximizing its profits. According to the American corporation policy, Aoki will repatriate a given percentage of its taxable profit to the home country.

Emerging markets have a large number of middle class that provide a good market for commodities in their countries. The middle-income earners have enough disposable income that enable them purchase electronics. The ability to purchase electronics