Report on whether or not invest in united kingdom by 9b apparel

Páginas: 9 (2192 palabras) Publicado: 19 de octubre de 2010
Report on whether or not invests in United Kingdom by 9b Apparel.


The aim of the report is to analyze and investigate current tendencies and repercussions of the globalization and multinational enterprises in terms of the potential investment by 9b Apparel into the United Kingdom market.


Initiated in 2001, 9b Apparel is a full service garment and garmentconnected producer. It is located in the core of the apparel area in Downtown, Los Angeles, California. Being the lowest in the industry and producing a wide range of items, the company is at that moment intending to expand its business into United Kingdom. The subsequent assignment brief would have perception of the UK market thoroughly particularly regarding the sectors connected to the company on thedatabase supplied by ISIC Rev 3. This database supplies data of the operation of the nations in the overseas economies. The database incorporates numerous dissimilar alternatives that have an effect on the overseas investment as wages, employment, R&D, and so on. This is also advantageous for the companies that are competing for the possibility of investing in a specific country. This is usefulwhen reaching a significant decision concerning overseas investment. Referring to the report, this database would be beneficial to collect information respecting overseas investment and business in the United Kingdom. It would be done by the examination of factors which are explained below in the assignment brief.

Assignment brief

This brief outlines the information concerning members of theOrganization for Economic Cooperation Development (OCDE) venturing in the United Kingdom market. This emphasizes how companies have been doing business in the United Kingdom upon the support of data obtainable for the years 2000-2007. The most powerful elements when investing in overseas market are number of business, number of employees, salaries, R&D and investment flow and production. Thesucceeding is the precise examination at the operation of United States in every one of these elements and to contrast it with the operation of other nations which have invested in United Kingdom. The examination would be useful for the determination process improvement by giving a better notion of the circumstances of the United States when taking into account United Kingdom as good possibility forthe business.

Number of companies
The number of companies that have flourishingly penetrated the United Kingdom market is the first influential factors to take into consideration by 9b Apparel. The number of United States companies that entered to the United Kingdom market was 1,383 in 2004 and 1,437 in 2007 with slight variations through the years. This indicates that United States companiesinvest more in United Kingdom than other nations such as Netherlands or Germany which are inside the European Union. This standard is significant since it is the first indication that companies could be profitable in a specific market. When the number of companies penetrating a certain market it signifies that the market is favorable to new foreign investments. Additionally, it is believed that whenthere are numerous companies in an industry, the probability of individualist is great. Some companies are the opinion that they can take steps without being observed.
The increase of US operations in the UK market indicates that the entrance of new companies in the UK market may be advantageous. But this data is not enough to decide whether or not entry in the UK since that could lead thecompany to negative results. Nevertheless, concerning 9b Apparel, it is significant to be aware that firms form outside the European Union are investing in the UK market, and consequently giving a wider options of potential customers.

Number of employees
The number of employees from US that are located in the UK is another significant element when expanding abroad. In 2001 the number of...
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