2. if a country is seeking to attract foreign investment in the form of manufacturing or distribution related facilities, list at least seven (7) things the government might do to increase the chances of this occurring. identify companies that have executed the strategy, what do they produce, who are their competitors and where did they locate. as a corollary identify three business clusters, define the functionality and participants.

Please find the detailed answer as follows:

Explanation:

The seven actions a government should take to boost the foreigh investment

(a) Create a positive business environment by increasing ease of doing business by reducing bureaucratic hurdles and easing procedures.

(b) Provide tax holidays and favourable economic environment.

(c) Improve law and order in the country.

(d) Improve basic infrastructure of the country to facilitate business operations

(e) Facilitate the job creation process by training the local population to participate in the economic activity,

(f) Provide favourable export import policies to increase feasibility.

(g) Revamp its foreign policy and improve its outreach in the countries with potential investors.

Many organisations have invested in countries with low cost of labour to produce with higher efficiency and take advantage of the strategic location and situational factors of these nations. Examples of companies are Apple, which assembles most of its iphones and ipads in China with help of Foxconn and churns them out at a lightening pace, a feat it would never be able to do back home, Nike which produces with helps of its partners in Viet Nam and Harley Davidson which has recently set up a global production hub in India to reduce the manufacturing cost of its motorcycles. Similar set up has been done by Ducati of Italy in Thailand. This stratgey has enabled them to reduce their manufacturing costs and have competitive advantage over their rivals like Samsung and Nokia ( for Apple), and Eurpoean motorcycle companies like BMW, Moto Guzzi. Aprilia and Agusta ( For Ducati).

The three manufacturing clusters are

Guangdong in China ( electronic components like mobile phones, laptops personal computers, machinery and appliances) where thousands of small and big manufacuring and assembly plants operate which supply to global gaints like Samsung, Apple, IBM, Dell and local companies like Huawei.

Dhaka in Bangladesh - This cluster for knitted garments is a fast emerging place for find knitted textiles and is hub for many global retail companies like Gap, Diesel, G star Raw, Calvin Klein among others.

Hu Chi Minh city in Vietnam ( shoe and sports goods cluster) - This cluster is known to produce sport shoes, garments and accessories for sports. The maon players are the fully own subsidiaries and partners of global companies like Nike, Adidas, Asics and New Balance among others.

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