Major multinational manufacturing company

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Reference no: EM133092069

Foreign direct investment (FDI) in a developing economy, such as Malaysia, can be extremely profitable for multinational companies (MNCs). It can also result in substantial losses if economic conditions in Malaysia deteriorate. Malaysia's economic growth is significantly influenced by exports and imports of oil and gas.

If you were the head of a major multinational manufacturing company of household goods seeking to enter the Malaysian market via FDI, would you seek to acquire an existing firm, or build entirely new facilities (a greenfield investment)? Explain the benefits and costs of your choice and justify your answer.

Reference no: EM133092069

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