Assignment 1: Individual Research and Short Paper—Exiting International Markets
When companies exit markets, they need to consider the legal and social aspects in order to avoid complications with stakeholders such as labor, local municipalities, vendors, and taxing authorities. Through this assignment, we will review some of the regulatory issues multinational companies need to consider when exiting foreign markets.
At times, foreign companies realize that staying in a specific country may not be the right course of action. When Mercedes decided to sell its stake in Chrysler in the U.S., both companies had major stakes in exiting so that all stakeholders would benefit. Refer to following Web site to learn more.
- Automotoportal. (2007, April). DaimlerChrysler to sell Chrysler group to Cerberus. Retrieved March 15, 2009, from http://www.automotoportal.com/article/daimlerchrysler-to-sell-chrysler-group-to-cerberus
Select an MNC that decided to exit all or a portion of its investment in the U.S. marketplace as your focus. Using news article archives, research the company’s strategy and write responses to the following questions:
- Who become new stakeholders when companies choose to exit a country?
- What are some of the regulatory matters that need to be addressed?
- Did your selected MNC exit the market entirely or are they still doing business using other venues, including distribution and sales with other product lines? Explain.
- What were some of the MNC’s considerations as they exited these markets?
Write a 3- to 5-page report in Word format. Apply current APA standards for writing to your work