Firms are regularly looking for investment options to increase their return on capital entrusted upon them by the shareholders. Given the sluggish economic growth in the developed marketplaces of the western world and the rise of East Asian and South American economies, companies want further afield to exploit opportunities in these rising markets. The development for moving to faraway lands is further backed by the forces of globalization which may have led o emergence of a in close proximity to homogenous consumer culture. Rising middle classes in these speedily growing economies promise continued demand for products.
There are two main strategies that companies go after in their pursuit to provide the appearing economies. Firms can begin from scratch by building brand new facilities in the mark marketplaces.
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