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    Columbia Motors’ Foreign Investment - CASE STUDY

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    Columbia Motors’ Foreign Investment - CASE STUDY

    Post by Admin on Fri Oct 30, 2009 3:35 pm

    Columbia Motors’ Foreign Investment

    You are on a board of directors of Columbia Motors. CM is considering putting a new plant in a foreign country. The people in that country consist of three basic groups, the Settlers, the Immigrants and the Natives. The Settlers are descendents of people who came to this country several hundred years ago. They have most of the economic wealth and political power. Almost all the people in the universities are Settlers. The Immigrants moved to this country about a century ago. They have set up small businesses and established their own small colleges and trade schools so they can practice the professions within their communities. The Immigrants have a small amount of political power. The Natives are the original occupants of the country. They do most of the manual jobs in the country. Their education system is very basic, and they have very little political power. Each group lives in its own neighborhood, and there is very little interaction among the people, except for the Immigrants or Natives who work for the Settlers. Each group funds its own social services, such as schools and hospitals.

    If CM sets up this plant, what should its policies be towards:

    1) Workplace facilities, such as cafeterias, rest rooms, locker rooms and recreation areas;

    2) Pay scales;

    3) Availability of training programs for more skilled positions in the plant;

    4) Promotion policies;

    5) Benefits programs, such as health coverage or tuition reimbursement;

    6) Charitable donations to community projects (CM likes to make charitable contributions in the countries in which it has plants);


    How would you present these policies to the foreign country's authorities who will decide whether to issue the permits to build and operate the plant:

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