Global Business Environment

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Summary This report analyses the entire Asian environment and attractiveness of Asia, and the reason why Giordano choose Asia as its main market. From the analysis of Asian environment, sizeable population, increasing consumption on cloth, pursuing for fashion and globalization of world are all factors that make Asia attractive. Giordano’s FDI-related projects and the FDI modes are exhibited in this report, which can describe a whole picture of this company’s development. In addition, based on the analysis of FDI activities, Giordano’s FDI activities have many impacts on host economies, like job creation in Indonesia.  This report draws on sales data of main Asian markets and subordinate brands to analyse the trend of investment…show more content…
Like what they do in Indonesia and Malaysia, which is great potential market. Resource seeking Low-cost inputs or high-quality resources in foreign countries is important for mMNEs (Dunning 2003), the low labor-cost and rent make Giordano easier to expand its business in Kuala Lumpur (capital of Malaysia) and Indonesia. 2. Main FDI-related projects, FDI modes and impacts on host economies 2.1 Main FDI-related projects and FDI modes Foreign country | FDI mode | Impacts on host economies | Singapore | Wholly-owned subsidiary | (1)Competition degree increased (2)Increased employment (3)Increased fashion consciousness | Indonesia | Wholly-owned subsidiary | | Malaysia | Wholly-owned subsidiary | | South Korea | Joint venture | | The Middle East | Joint venture | | Table 2. FDI modes and impacts on host economies Source: Giordano annual report 2.1.1 Giordano’s wholly-owned subsidiaries Investment environment The advantages of Malaysia, Indonesia are mainly based on low labor cost, low rent and large-scale production compared with North America and Europe, which lowered the cost and strengthen the capability of company in international trade price competition. Great demand from Asia countries Before the entry of Singapore in 2005, Giordano had performed well in Hong Kong and had been getting a lot of enquiries about when open in Singapore, which also encourages Giordano entering other Asia countries in the
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