Develop a plan to establish an FDI (foreign direct investment) in China in the Automotive Industry.

MKTG 375 International Transactions Research Presentation #4 (Term Paper/ Implementation) 100 Points In every International Transaction, there is typically some level of FDI (Foreign Direct Investment). To this end, you are to develop a plan to establish a FDI in China. Your sector will be Automotive, and you are to develop a comprehensive plan to establish the following: Assumptions: Establish FDI in China, Assume investment will be from $1.0-$5.0M USD Your product is Electrical Motors Assume 10,000 Annual Production in China 50% will stay in China and sold to Tesla 50% will be shipped to USA Long Beach, CA to be sold to General Motors. Assume you will initially create a WOFE (Wholly owned Foreign Enterprise in China) which will take approximately 3 months to secure. After proving yourself, you will be able to become a fully “China Domestic Company’. As explained, your operation will produce electrical motors for the growing automotive segment. 50% of your production will be aimed at China domestic market and the other 50% will be aimed at export market to USA. Your unit sale price is: $200 USD, Unit cost is $100 Ex-works China Container is 20', with cost of $4200 paid to Freight Broker Assume 1,000 units / container You will try to determine your potential US Harmony Code and applicable Duty Your paper will consist of the following: Your Table of Contents should contain at minimum the following…. Executive Overview Company Profile: You will name your company and discuss why you are establishing the operation. This will be a “Greenfield Operation”. Market Overview: You will discuss opportunity in China (fact they are also going green/ need you), and master plan that you will export 5K units annual to USA (1K /Each Shipment). Your expected steps to accomplish such a transaction Assume it is a great opportunity, and will you easily penetrate both USA and China 10% annual market without any difficulty. Be sure to state fact that you right sizing investments so you can serve both markets. Who will be involved… US Government - Commerce Dept. China Government - Commerce Dept. US/China Attorney- You will need to hire both Your management will include Ex-pat's from USA You will also hire seasoned experts in "Electrical Motor Mfg". Pricing and Financial Forecast (You will provide your first year forecast-plan/ USA and China) Logistics Planning Detail your assumed costs per /shipment to USA. Ex-works price Transportation costs Duty Costs Final Costs in USA Risk Analysis: You will develop list of threats that you are aware of and need to overcome. How are you going to ship (Logistic Planning) Identify your key documents that will go with every shipment. State the purpose of each document. References: APA Format You are to complete 10-12 pages in Word format. Keep all financials in USD for analysis. This paper is worth 100 points and will highlight your skills in both FDI and Logistics planning. Paper is Due no latter than Dec. 9th