Southeast Asia Forestry-Fruit Industry Investment - Case Study Example

SOUTHEAST ASIA FORESTRY-FRUIT INDUSTRY INVESTMENT By: Course: Professor: Institutional Affiliation: City: Date: Contents 1.Executive summary 3 2.Introduction 4 3.PESTLIED analysis 5 I.Political 5 II.Economic 6 III.Social 7 IV.Technological 8 V.Legal 9 VI.International 10 VII.Environmental 11 VIII.Demographic 12 4.Findings 13 I.Market size 14 II.Labour productivity and cost 15 III.Industry and Competitor analysis 15 5.Mode of entry 18 6.Conclusion 23 7.References 24 1. Executive summary The report provides an evaluation and analysis of Southeast Asia forestry-fruit industry direct investment in Malaysia. The large market size and availability of cheap labour is viable to the development of the company in Malaysia. Malaysia economy is growing rapidly yearly creating a conducive environment for the development of foreign direct investing companies. The Malaysia Gross Domestic Product growth rate in the past five year is an average of +4.77. Further research indicates that the country’s economy will continually grow. The PESTLIED factor influences the functionality and management of a firm. They provide a basis of establishing and growing the organisation in an external market opportunity. The report finds that the viable entry mode of the company into Malaysia is through direct investment. Malaysia government have introduced incentives to international organisation to direct venture into the host country’s market. They have also ensured no tariffs and laws restrict direct investment by organisations in their market. Direct investments provide direct management of the entire sector involved from the production of a product to consumption. These factors encourage direct investment by the firm in Malaysia. 2. Introduction Dramatically, in the new millennium, the world economic is changing. The monetary progression, instantaneous capital flow, the new international conglomerates are among the changes occurring in Malaysia economy. Similarly, the rate of internet growth results in the changing ways of international management of market operations. The progressions are having significant effects on universal marketing, management and administration. The progressions include expanding risks and instability, continuous data administration, and quick response to worldwide enhancements. The cross-impact analysis furthermore has turned into a more vital tool in managing uncertain reactions amid complex forces. The administrative outlook will need to relate the present to make the future, and move a long way beyond benchmarking. It will prompt changes in decision making, including a shift from moderately stable situations and technical administration ways. It enables them deal with more turbulent situations and systematic management approaches. It will likewise prompt a movement from stiff authenticities of solving issues to fundamental truths for problem avoidance. In a perspective evaluation, it is established that the numerous adjustments in the foreign direct investment have greatly be influenced by the confluence of the several important external developments. The various changes in the macro marketing forces are adversely reshaping the international management and commercialization strategies. Foreign direct investment alludes to the foundation, management and control of another venture abroad. The establishment of that kind of a venture entails heavy monetary and managerial responsibility with respect to the investing firm (Christiansen 2014). The investing organization transfers equity capital, innovation, entrepreneurship or other productive knowledge in relation to the industry. FDI encourages the global integration of business sectors in order to acquire market of goods and services. By selling directly to citizens of the host economy, foreign direct financial investors and experts might overcome regulations, laws or strategy instigated tariffs to market access (UK Trade and Investment 2014). FDI has customarily performed to this capability, and in market management, the nearby vicinity market is accessed. The purported FDI has encouraged the worldwide division of work, and thus invigorated the development of trade. Recent research suggests that for 66% of world stock exchange, a multinational organization is involved on not less than one part of the transaction (Jensen 2012). The report evaluates the PESTLIED factors influencing management and the viable entry mode of Southeast Asia forestry-fruit industry into Malaysia market. 3. PESTLIED analysis PESTLIED is used to represent an acronym that is utilized to break down the business environment by taking a gander at the key areas. The key sections include; Political, Economic, Social, Technology, Legal, International, Environmental and Demographic (Grant 2010). They provide an avenue for analysing the business environment from all angles. I. Political Political factor takes a gander at how government regulations and legal issues influence an organization's capacity to be productive, profitable and successful. Issues that must be considered incorporate copyright and property law implementation, tax guidelines and political stability of the target country. Other aspects include trade regulations, safety regulations and employment laws (Buckley 2015). Organizations ought to additionally consider their local and federal force structure. Also they should consider how an anticipated change in power could influence their business. Southeast Asia forestry-fruit industry is a company that is governedby the Department of Agriculture (Arline 2014). Along these lines, they should maintain a secure path of the laws and regulations set by the department with consistency. Likewise, there is awide range of regulations across Malaysia that either maybe relaxed or stringent and could adversely affect the company(Blaine 2008). There is aggressive estimation of the market by the company’s competitors dealing with fruit juice, and that is one element that the company needs to remember at all times. The political situation likewise matters incredibly as there can be some thoughtful agitation in specific markets or because of expansion the bargains of the product can fall. Southeast Asia forestry-fruit industry needs to stay by every one of those strategies and changes so they can adjust to each one of those progressions. They include: Government regulations with respect to employee hygiene, food and health regulations, and food standards. Government policies and strategies with respect to the fruit juice. They incorporate, inspection by food and health departments and licensing. Stability of the government The entry mode regulations Taxes, tariffs and laws II. Economic The element analyzes the external monetary issues that can impact a portion in an organization's prosperity (Razin 2007). Things to consider incorporate financial development, trade, expansion and interest rates, monetary dependability. They also include foreseen shifts in equipment and product costs, credit accessibility unemployment and its approaches. As financial downturn torments the economy, organizations needed to rebuild their business and product promotion campaigns significantly. Additionally, with decreasing profits they needed to re-consider and re-evaluate upon how to enter the business (Cavusgil 2015). Financial circumstances have the most astounding impact on business. To ensure improved and sustained expansion, an organisation need to evaluate its financial position regularly. Economic factors include: Interest rates influence on the cost of capital. The cost of capital is proportional directly to the rate of interest. The inflation rate decides the rate of compensation for employees and specifically influences the cost of the Southeast Asia forestry-fruit industry’s fruit juice products. Also, the inflation rate is proportional to the prices of the products. Economic trends are indicators of the profitability and sustainability of a business a region. Also, they are helping in deciding the market strategies to be appliedto a certain market opportunity (Blonigen 2011). III. Social Social factors dissect the demographic and social parts of the organization's business. The components help organizations look at customers’ needs and figure out what pushes them to purchase the products. Among the things that ought to be analysed are demographics, populace, development rates, age dissemination and states of mind toward work (Carraher 2011). Other aspects include employment business sector patterns, religious and moral convictions, way of life changes, instructive and natural issues and wellbeing cognizance (Dunning 2008). Social variables significantly affect the Southeast Asia forestry-fruit industry fruit juice, as it needs to stay by the strict and stark contrasts of societies the world as a whole. Likewise, the fruit juice needs to convey its picture as a worldwide brand so that the individuals can relate it to themselves as something that unites the world together. More often than not, the social ramifications are found in advertising campaigns. For instance, Malaysia has religious festivals, so the company’s juice needs to keep by every one of those festivals(Verbeke 2013). Therefore, they would comprehend the psyche of their business and market enabling them to cash upon the market opportunity. The examples of social factors are: Dietary patterns of the individuals in the country of choice, Malaysia, high influences the growth of the company. The ratio of persons prefering to have a drink of fruit juice. The cultural implications. The social lifestyles. Educational level. Domestic structure Distribution of wealth IV. Technological This variable looks into innovation issues that influence how an association conveys its item or administration to the commercial center. Among the particular things that should be considered are tehnical headways, government spending on innovative examination (Terterov 2010). The life cycle of current innovation, the part of the Internet and how any progressions to it may play out, and the effect of potential data innovation changes are the other factors. Also, organizations ought to consider how generational movements, and their related innovative desires, are prone to influence the individuals who will purchase their products and how it is conveyed (Foley 2009). With the approach of the new age in innovation, the organizations have totally incorporated themselves with all the late changes that have occurred. To specify a late pattern that has incredibly grabbed and something that each business is moving in the direction of is Social Media. The online networking blast has taken into consideration progressively intelligent engagement with the customers directly. Therefore, Southeast Asia forestry-fruit industry needs to stay in front of the considerable number of advancements that happen. They should keep in perspective how the juvenile of today uses innovation to their advantage. Also, by considering the methods, the company can enhance social media participation to continue expanding brand review and the products. Technological factors may include: A decent specialized base would prompt better generation, acquirement, and dispersion logistics, bringing about lessened wastage and lower expenses. Powerful innovation may be a definitive variable for technological advancement, better presentation, and more viable business promotion techniques. Platforms for innovative technology. Technological obsolescence rate Technological advancement rate. V. Legal Legislative changes occur every once in a while. A significant number of these progressions influence the business environment. In the event that an administrative body sets up a regulation for commercial ventures, for instance, that law would affect commercial ventures and business in that economy ( International Monetary Fund 2014). In this way, organizations ought to additionally examine the lawful advancements in particular situations and respective environments. There can be numerous legitimate ramifications upon the drink business. For example, a company being blamed for utilizing contaminated water, given a lab test conducted on the corporation’s water streaming into the production sector. It could cost the organization numerous billions of money (GlobalUS 2014). Some of the legal factors any organization ought to consider include: Health and safety regulations Product regulations Competitive regulations Employment regulations Patent infringements VI. International Keep in mind that diversification, is considerably more critical when internationally investing. Deciding to invest a whole portfolio in a solitary nation is not prudent. In an extensively expanded worldwide portfolio, ventures ought to be assigned among developed, developing and maybe frontier markets (Marinov 2013). Indeed, even in a more understood portfolio, risks ought to be spread among a few nations to boost expansion and minimize failure. International investing involves a watchful examination of the political, monetary and business risks that could bring about sudden venture losses. A country’s risk evaluation is a central stride in establishing and maintaining a global portfolio. Financial specialists and investors utilize the numerous phenomenal data sources accessible to assess nation risk. The organisation’s risks will thereby be better analysed when developing their worldwide portfolios (Business Monitor International 2014). According to Hollensen 2009, organizations face numerous complications when they develop an international outlook. They need to change their state of mind from a basic domestic market to an intricate and complex world market. Businesses face numerous entanglements when they build up a worldwide trademark. VII. Environmental Environmental analysis is a key instrument. It is a procedure to distinguish all the internal and external elements, which influence an organization’s performance. The investigation involves evaluating the level of danger or harm the company may introduce (Graham 2005). The assessments are later deciphered into the choice making procedure. The examination helps the firm align strategies with respect to the environment. Today’s market is confronting changes consistently. Numerous new things developed after some time and the entire situation can change in just a few moments. Some elements are outside an organization’s ability to control (UK Trade and Investment 2008). In any case, a great deal of these things can be monitored. Their environment incredibly impacts organizations’wellbeing. All the situational elements that determine regular circumstances impact firms in one way or another. In this way, organizations should always examine the immediate environment the business enterprise is situated. The environmental factors to be considered may include: Geographical location The weather and climate Waste disposal laws and regulations Energy consumption regulation Person’s attitude in regards to the environment VIII. Demographic Demographics entail the target identifiers of customer that incorporate characteristics or traits such as age, marital and parental status, sex, education and income levels. In different occasions, the more the targeted customers are known, the more the company can focus their message on that particular segment of the market. The point by point profiles of clients give a company their objective demographic, which is regularly a blend of more than one trait or characteristic. Understanding the marketplace demographics help set the product or service prices and figures out where to offer the item. It enables the company identify the highlights ought to be included and the benefits ought to be underlined (Rialp 2013). Demographics help in establishment of procedures to enhance the approach of the target customers and enhance deals by helping satisfy customers’ demands. Focussing on whom to target, begin with an examination of the data provided by the professional associations and industry’s trade. The groups frequently direct national studies and give a point of point data on consumers’ preferences, demographics buying trends, and habits. When a particular target group is chosen, the company enhances and protects its brand, but also loses an opportunity to sell to the other groups (Brakman 2008). If the principle targets demographic for a fitness club is individuals between the ages of 25 and 45. They start publicizing senior high impact exercise classes;it may damage brand with solid youthful bodies (Kumar 2003). 4. Findings Throughout the research process, the PESTLIED factors influencing the company’s decision to undertake Foreign Direct Investment. The factor is majorly affected by the Malaysia market structure, legal requirements and conditions put in place by the country. The Malaysia Gross Domestic Product extended 4.90 percent in the second quarter of 2015. Gross domestic productAnnual Growth Rate in Malaysia was an average of 4.77 percent from 2000 until 2015, coming to a peak value of 10.30 percent in the first quarter of 2010. In the first months of 2009 a low of - 6.20 percent growth rate was recorded. Gross domestic product Annual Growth Rate in Malaysia is accounted for by the Department of Statistics Malaysia(Department of Statistics 2015). Fig. 1. The growth rate of Malaysia GDP(Department of Statistics 2015). The Malaysian economy deteriorated by 4.9 percent in the second quarter of 2015, from a 5.6 percent expansion in the past period yet at the same time below the predicted value(Buckley 2015). On the production section, the service sector developed by 5.0 percent, moderating from a 6.4 percent extension in the past quarter. It was supported by a wholesale and retail exchange +5.9 percent growth, basically determined by wholesale section. Also the data and correspondence expanded by +9.3 percent, mostly because of the solid energy in correspondence. Higher creation in chemicals, compound elements and a recuperation of elastic things has impelled the petroleum, synthetic, elastic & plastic items developing by +3.5 percent. The mining and quarrying part developed by +6.0 percent, abating from a +9.6 percent development in March. The deterioration resulted from a decrease flow of regular gas and control of flow of raw petroleum(Cavusgil 2015). Malaysia's GDP is required to stay on a relentless development way with household interest staying as the key driver of development. Private utilization is required to keep on conforming to the presentation of the Goods and Services Tax. Despite the fact that wage development and stable work economic situations would give backing to family unit spending (Business Monitor International 2014). Development of business ventures will be upheld by capital expenditures in the assembling and administrations divisions, and alsoto base activities. The improvements will therefore contribute towards counterbalancing the weaker execution of the outer division (Sahoo 2014). I. Market size The market size as measured by GDP or GDP per capita is by all accounts the most important FDI determinant in an economy. Foreign Direct Investment tend to move to nations with bigger and growing markets, where firms can conceivably get a higher profit for their capital. They also seek nations where they can acquire adequate workforce. The business size theory underpins a thought that a huge industryis needed for the productive use of assets and exploitation of economies of scale(Grant 2010). As the enterprise sector size develops to some discriminating quality, FDI will begin to increment from that point with its further extension. It is also expressed that econometric studies are contrasting across sections of a country to an entrenched relationship between the FDI and the span of the business sector in that particular country. A few studies observed GDP development rate to be a critical illustrative variable(Dunning 2008). The expansion of a national income may have less pertinence to FDI decisions than development performance, as an indicator of business sector potential. II. Labour productivity and cost Wage is an indicator of the labour cost. It is among the most contentious potential determinants of the FDI of a country. Hypothetically, the significance of cheap labour in drawing in multinationals is settled upon by the modernisation hypothesis and also the proponents of dependency hypothesis. There is, be that as it may, no unanimity even among the similarly little number of studies that have investigated the part of compensation in influencing FDI (Occupytheory 2014). The results range from higher host nation wages demoralizing inbound FDI to having no huge impact or even a positive affiliation. There is no harmony in the studies with respect to the part of wages in pulling FDI. A higher wages demoralize Foreign Direct investment (Anon 2004). Observational research has discovered relative labour costs to be measurably significance, especially for foreign direct investment in labour-intensive businesses. On the other hand, when the expense of work is immaterial, the aptitudes of the work power are relied upon to have an effect on choices about FDI location(Phatak 2005). III. Industry and Competitor analysis Utilizing the annual information for the period 1960–2014 on the forestry fruit industry, the determinants of FDI for Malaysia are examined. In consistency with the forecast of the business sector size hypothesis, genuine GDP is found to have a noteworthy positive effect on FDI inflows (International Trade and Finance Conference, 2014). Evidence shows that the development and growth rate of GDP exerts a little positive impact on internal FDI. From a strategy perspective, the findings indicate that the increments in the level of infrastructure development, financial development, and trade openness advance FDI (Brakman 2008). Then again, higher statutory corporate expense and tax rate and energy appreciation of the real conversion standard seem to demoralize FDI inflows. Interestingly, the research additionally appears to advocate that higher macroeconomic instability prompts more FDI inflows (Stiglitz 2008). Monetary hypothesis indicates that proficient working of business sectors relies on upon a satisfactory level of rivalry between competitors in the sector. At the point when FDI takes shape in the host nation, the outcome is to build up another venture, expanding the quantity of players in the business sector and in this way buyer’s choice (Arline 2014). Thus, this can expand the level of competition in a national business sector, consequently driving down costs and expanding the monetary welfare of customers. Expanded competition has a tendency to empower capital ventures by firms in plant, technology and equipment as they battle to pick up an edge over their opponents. The long haul results may incorporate expanded product, productivity growth and procedure advancements and innovations, and more prominently, financial development. Such useful impacts appear to have happened in Malaysia, with increased competition over the fruit juice business. The introduction of an international firm into the industry will trigger adverse effects on: Competition Country balance of payment Nation’s sovereignty and autonomy. Competition: Malaysia government now and again worry that the Foreign Direct Investments may have more prominent monetary force than indigenous competitors. As part of the larger international organization, the FDI might be able to draw funds generated elsewhere to subsidize its cost in Malaysia’s market. When the business sector is monopolized, the FDI could raise prices over those that would triumph in competitive market (Demirbag 2015). It couldimplyless foreign investment that would mean, fewer job opportunities, slower growth, less innovation, less diverse economy, and lower quality of services and goods. Country’s balance of payment: The conceivable unfriendly impacts of FDI on Malaysia’s balance of payments position are dual. To start with, set against the primary capital inflow that accompanies FDI must be the ensuing outflow of profit from the foreign auxiliary to its parent organization (Khong 2010). A second concern emerges when a foreign subsidiary firm imports a considerable amount of its inputs from abroad. It will result in a debit on current accounts of Malaysia’s balance of payments. Nation’s sovereignty and autonomy: How Malaysia is governed and ruled would adversely be affected. The laws to be enacted and passed would be in consideration of the international firms investing in the country. 5. Mode of entry International Marketing Entry Process is a five stage procedure, and its motivation is to gage which worldwide market or markets offer the best open opportunities to the company’s products. The five stages includes: Identification of the country Preliminary screening In-depth screening Final selection Direct Experience The choice of how to enter a foreign business sector can have a noteworthy effect on the outcomes. The decision of entry modes entailing, internationalization techniques, structures, instruments or courses, relies upon both exogenous and endogenous elements (Dadasov 2010). The endogenous factors include mainly business potentials. In addition exogenous factors entail depicting the business position in the objective business sector or the business in which the firm works. The development for internationalization of activities assumes an essential part while considering the mode of entry. In the writing, there are different models clarifying the internationalization of the firm and the modes of entry. The different modes of entry into foreign markets have different efficiency and also a diversity of production cost(Foley 2009).Venturing into foreign markets can be accomplished by means of the following the mechanisms: I. Exporting: It is the direct sale and marketing of good and services domestically produced in another country. Exporting is a well-established and traditional method of foreign market approach. Since exporting out does not oblige that the merchandise be produced in the objective country, no investment is required in foreign production amenities. A large portion of the expenses associated with the exports falls under marketing expenses. II. Licensing: Licensing basically allows an organization in the target nation to utilize the properties of the licensor. Such property ordinarily is elusive, for example, production techniques, trademarks, licenses, and patents. The licensee pays an expense in return for the rights to utilize the impalpable property and potentially for specialized help. Permitting small business ventures to license equipment and facilities can possibly give a substantial Return on Investment(UK Trade and Investment., 2010). On the other hand, since the licensee produces and markets the goods, potential outcomes from assembling, manufacturing and product promotion may be lost. III. Joint Venture: There are five basic targets in a joint endeavour. They include; entry into the market, reward and risk sharing, joint product development, innovation sharing, and government regulations conforming. Other advantages incorporate political connections and dispersion channel that could depend on the relationships. Such alliances are favourable when: The partner’s key objectives convergewhere as their competitive goals are divergent. The partner’s market power, resources, and size are smaller as compared the competitors. Partners will learn more from each other while also regulating access to their proprietary skills. Potential issues associated with joint venture include: Strife over lopsided new investment Proprietary knowledge mistrust Performance vagueness-how the pie is to be split Absence of parent firm support Cultural conflicts When and how to terminate the partnership IV. Direct Investment: Is it the direct ownership of property or facilities in the country targeted for investing in. It includes the exchange of resources including technology, personnel, and capital. The direct foreign venture may be made through the procurement of current substance or the foundation of another undertaking. Direct ownership gives a high level of control in the operations and the capacity to know better the competitive environment, market, and consumers(Khong 2010). On the other hand, it obliges a high level of responsibility and also ahigh level of assets and resources. The appropriate mode of entry for the company is direct investment into Malaysia’s market. The company would have complete control of its facilities, resources, and marketing. Direct investment in a foreign country is amongst the significant economic figures. It is connected with business undertaking and advantages that will enormously help the Southeast Asia forestry-fruit industry in achieving its business objectives in only a short time. Furthermore, Malaysia is opening up its doors and borders exclusively when it entails foreign direct investment in the country(Wach 2014). Some of the benefits the company will derive from directly investing in Malaysia’s market includes: Malaysia have their own particular import taxes and tariffs. Therefore, it is one of the reason why coming to their international trade is rather troublesome. In accordance with this, there the company require their vicinity in the Malaysia’s markets. It order to verify that their deals and business objectives will totally be met. Direct investment in Malaysia therefore provide an avenue for the industry to meet their business goals and sales(Terterov 2010). The government of Malaysia gives foreign direct ventures an opportunity get extra expertise, technology and products (Takatoshi 2008). As a direct foreign investor, the company will get tax and tariff incentives that will be extremely valuable to the company. The company will therefore secure a reduced cost of production. Direct investing and venturing in Malaysia can diminish the disparity between cost and revenues. Consequently, the company will be assured that the production costs endured will be the same, hence they can easily sell the fruit juice products. Direct investment of Southeast Asia forestry-fruit industry into Malaysia provides the advantages of decreased cost through the acknowledgment of scale economies. Also the coordination advantages, particularly for incorporated supply chains. The inclination for an immediate venture approach as opposed to authorizing and franchising can likewise been seen as far as vital control is concerned. The administration and management rights takes into account mechanical expertise and licensed innovation to be kept in Malaysia. Investing directly provides a full access to Malaysia’s resources. The resources include human capital and the wide range of fruits produced in the country. Human capital is the skill and information of those ready to perform work, more referred as the workforce. The traits gained via sharing experience and training would expand the overall human capital and education in Malaysia (Verbeke 2013). The production cost attributed with the fruit industry will therefore be reduced. It is an advantage to the company, since they will maximise their profits. It will enable Malaysia utilize its resources fully through employment availability. The company will also provide a market for the fruits produced locally in Malaysia. The industry’s direct venturing in Malaysia may yield other imperative advantages to the organization. The company may appreciate various economies of scale and economies of extension into the Malaysia market. The company’s direct venturing in Malaysia will permit exchanges of knowledge and resource transfer. Malaysia will get access to new skills, innovations, and technologies. Furthermore, the company will acquire new skills in the production (Liu 2013). Increased productivity. The company would provide equipment and facilities that could increase the country workforce’s productivity. Furthermore, the company would have an improved production due to its centralised production process. With the enterprise utilizing direct investment in Malaysia market, it can use it has a passage to the business sector, as opposed to a venture system. Notwithstanding the decrease in exchange hindrances, FDI development has expanded at a higher rate than the level of world exchange. It results as organizations endeavour to bypass protectionist measures through direct ventures (Ramamurti 2011). With globalization, the limits and horizons points have been protracted, and organizations now see the world economy as their business sector. Thus, the company’s venturing into the Malaysia market is boosted due to the withdrawal of hindrance and barriers. Another huge advantage of foreign direct venturing is the increment of Malaysia’s income. With more occupations and higher wages, the national salary typically increases. Subsequently, economic growth and monetary development is spurred. Not only will the organization typically offer higher pay levels in the country but also it would ensure income increment. It will stimulate Malaysia’s economic development. It create a conducive environment for the company to benefit from the local agricultural industry. 6. Conclusion The purpose of the research is to investigate the factors influencing the determinants of foreign direct investment. It focuses on the Southeast Asia forestry-fruit industry, a company based in Australia, investment in the Malaysia market. It looks at the co-integration of the company’s products in the Malaysia market. It portrays the analysis of corporation PESTLIED factors that enables proper management and administration of the enterprise. The factor falls into various categories including; demographic, environmental, technological, international, political, legal, and economical. They affect a company adversely, and their effects should keenly be analysedand documented. Consequently, strategies on how to tackle those factors should correctl eastablished and executed appropriately by the right personnel. Furthermore, it analyzes the viability of the company in Malaysia. It takes a look at the Malaysia’s economic growth. It focuses on the GDP and the per capita income of the country. The Malaysia’s GDP is growing yearly. Malaysia government is encouraging foreign direct investment in the country through the provision of incentives to the investing firms. Southeast Asia forestry-fruit industry foreign investment should enable it develop and improve its production. The modes of the company’s entry into the international market are analysed. The viable entry mode of the company is through direct foreign venturing into Malaysia market. It ensures the company’s full control of its production process, transportation and also the marketing of its produce. With the application and introduction of incentives by the host country, the direct investing becomes the best avenue through which Southeast Asia forestry-fruit industry venture into Malaysia Market. 7. References Read More