A Western European automobile manufacturer is considering entering markets in Southeast Asia. The company wants to assemble its lower-priced cares outside Ho Chi Min City, Vietnam. Major components would come from manufacturing plants in Brazil, Poland and China. The cars would then be sold in emerging markets throughout Southeast Asia and the Indian subcontinent.

Financial capital is flowing into Vietnam at a fair pace. The currency is strong, and inflation remains low. As with other nations in the region, investors are generally wary of the nation's stability. The new auto assembly plant would boost the local economy, reduce unemployment and increase local wages. But some local politicians fear the company might be interested only in exploiting the country's relatively low-cost labor.

Questions:

- As the company, evaluate the best 3 options for entering the market. Be sure to look at the pros and cons of each prior to deciding on the best option. (Consider export, licensing, franchising, strategic alliance, joint venture or wholly owned subsidiary.)

- Based on the market entry strategy you decide on, outline your objectives and next steps.

- How does culture affect success in the market? How does it affect your relationship and approach with suppliers, government bodies and/or other key business relationships?