Reference no: EM133531396

Question: Manounya is an emerging economy in Asia with a population of 80 million, and a member of the Regional Comprehensive Economic Partnership (RCEP). In the last two decades, the country has developed a strong manufacturing industry covering a wide range of consumer products mainly for exports. The country has a growing middle-class population as a result of its rapid economic growth with GDP per capita reaching USD15,000 in 2021. The overall education level in the country has been steadily improving and keeping pace with the economic development with a large pool of skilled people. However, in the past two years, Manounya has been facing several challenges. The exports driven by its manufacturing industry have slowed down from two-digits annual growth in the past two decades to zero growth in the past two years. There have been increasing geopolitical tensions with two neighbouring countries. Internally, the government has been facing strong opposition from other political parties in the country, criticised for its inappropriate handling of foreign affairs and failure in growing its economy. To continue to grow the country's manufacturing industry and improve its competitiveness, the Manounya government has developed long-term strategies to encourage investment that will help transform the industry to a high-tech based one, including providing incentives to attract foreign direct investment.

Using the Manounya scenario and any assumptions that are deemed necessary and appropriate, discuss the opportunities for an Australian company specialised in developing high-tech medical equipment to expand its business to Manounya as part of its internationalisation strategy and evaluate the possible risks involved in such an endeavour.