SIB6007-B Current Issues in International Business 2022/23
Name: Muhammad Hassan Asif
UoB: 20028946
Title: Foxconn to Thailand
Contents
,Executive summary....................................................................................................................3
1. Introduction............................................................................................................................4
Foxconn’s Revenue............................................................................................................4
Neighbouring Countries.....................................................................................................5
Thailand’s Ambitions.........................................................................................................5
2. PEST Analysis........................................................................................................................6
Political...................................................................................................................................6
Economic................................................................................................................................6
Social......................................................................................................................................8
Technology.............................................................................................................................9
3. Framework OLI Model..........................................................................................................9
Ownership Specific Advantage..............................................................................................9
Location Specification Advantage.......................................................................................10
Internalization Specific Advantages.....................................................................................11
4. Foreign Market Entry Methods............................................................................................12
5. Risk Management Strategies................................................................................................13
Political Risks:......................................................................................................................14
Political Instability:..........................................................................................................14
Corruption:.......................................................................................................................14
Social Risks.........................................................................................................................14
Child Labour:...................................................................................................................14
Gun Violence:...................................................................................................................15
Business Risks......................................................................................................................16
Financial Risks.....................................................................................................................17
Inflation............................................................................................................................17
Thai Baht weakening........................................................................................................17
Cybersecurity Threat........................................................................................................18
Climate Risk.........................................................................................................................18
6. Potential impact of Foxconn.................................................................................................19
Impact on the Government...................................................................................................19
Impact on Customers............................................................................................................19
Impact on Competition.........................................................................................................20
Impact on Suppliers..............................................................................................................21
7. Conclusion............................................................................................................................21
References................................................................................................................................23
, Executive summary
This report entails Foxconn’s entry strategy into Thailand. The introduction begins
with details about Foxconn its subsidiaries and its revenue. A PEST analysis is
performed for Thailand and different factors affecting Foxconn are described. In the
third part, the OLI model is utilized which discusses the ownership and the location
advantages and the internalization process of Foxconn. The determined market
entry method for Foxconn which is joint venture is also described. Moreover, the
various risks which Foxconn faces and the strategies to overcome them have been
described. To conclude the potential impacts of Foxconn to the market and other
stakeholders have been discussed followed by a conclusion.
Name: Muhammad Hassan Asif
UoB: 20028946
Title: Foxconn to Thailand
Contents
,Executive summary....................................................................................................................3
1. Introduction............................................................................................................................4
Foxconn’s Revenue............................................................................................................4
Neighbouring Countries.....................................................................................................5
Thailand’s Ambitions.........................................................................................................5
2. PEST Analysis........................................................................................................................6
Political...................................................................................................................................6
Economic................................................................................................................................6
Social......................................................................................................................................8
Technology.............................................................................................................................9
3. Framework OLI Model..........................................................................................................9
Ownership Specific Advantage..............................................................................................9
Location Specification Advantage.......................................................................................10
Internalization Specific Advantages.....................................................................................11
4. Foreign Market Entry Methods............................................................................................12
5. Risk Management Strategies................................................................................................13
Political Risks:......................................................................................................................14
Political Instability:..........................................................................................................14
Corruption:.......................................................................................................................14
Social Risks.........................................................................................................................14
Child Labour:...................................................................................................................14
Gun Violence:...................................................................................................................15
Business Risks......................................................................................................................16
Financial Risks.....................................................................................................................17
Inflation............................................................................................................................17
Thai Baht weakening........................................................................................................17
Cybersecurity Threat........................................................................................................18
Climate Risk.........................................................................................................................18
6. Potential impact of Foxconn.................................................................................................19
Impact on the Government...................................................................................................19
Impact on Customers............................................................................................................19
Impact on Competition.........................................................................................................20
Impact on Suppliers..............................................................................................................21
7. Conclusion............................................................................................................................21
References................................................................................................................................23
, Executive summary
This report entails Foxconn’s entry strategy into Thailand. The introduction begins
with details about Foxconn its subsidiaries and its revenue. A PEST analysis is
performed for Thailand and different factors affecting Foxconn are described. In the
third part, the OLI model is utilized which discusses the ownership and the location
advantages and the internalization process of Foxconn. The determined market
entry method for Foxconn which is joint venture is also described. Moreover, the
various risks which Foxconn faces and the strategies to overcome them have been
described. To conclude the potential impacts of Foxconn to the market and other
stakeholders have been discussed followed by a conclusion.
