Factors affecting Foreign Development Investments - Essay Example

Factors Affecting Foreign Development Investments Introduction. The automobile industries today have a dynamic experienceon the international and foreign investment procedures. This has brought about parity in their trading so that the formerly investors holding the largest market shares have been overturned by the dynamic set of new brands in the market. For instance, today Mercedes Company has faced a sharp decline in the proportions of market share it commands. This has been brought about by a myriad of factors.

Problems Accruing for Mercedes Company Share-holdingMercedes has for long been dependent on a monotonous design of model. This has been static over the years but if not then quite often the change is addressed by the color contrary to other automobile companies like Mitsubishi. Mercedes was initially designed with the initial intention of a dignitary model. This set a perception especially on the largest market proportion which doesn’t rank so. In many instances Mercedes has the a better record in luxurious experiences, and this has been brought about by its less cost effective operations, yet with virtually similar services as most brands.

Its technology has been static for quite long and the already established customer’s club shifts their attention to the new brands that can fairly identify with their foreign partners.Possible SolutionsThe Mercedes must develop a new technology engine model with higher competencies superseding the brands in the market. This can involve the use of light engines yet with high power rating. The model should also be designed to fit many events like sporting, partying, diplomatic, and in the event making it accessible for all.

The quality must however not be compromised. There should be annual promotions made in form of displays and other organized events. Incentives must also be given to customers such as free servicing during the promotions. Most importantly, regulations should be provided by the company in conjunction with international trade agencies. This will help limit the possibilities of discrimination to local as well as the foreign firms trading in the brand. This will ensure a larger market catchment. Work citedSharma, B.

& Gani, A. (2004). The Effects of Foreign Direct Investment on Human Development. Global Economy Journal, 4, 2, Article.