Expansion Decisions/International Business

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Assume that you work for a company as a VP of operations. You are
tasked to look at the possibility of expanding into one of two countries
with both manufacturing and distribution centers located in this

  • Country A is classified as a high income country with 250 million
    people in it. The technology base is solid but natural resources (wood,
    farming, iron, etc.) are somewhat limited.
  • Country B has 800 million people and is classified as middle-income.
    Resources in this country are favorable, but the government is somewhat
    hesitant on letting foreign companies in to operate.

Which country would you recommend expansion into and why?