You are a senior manager in a U. S. automobile company considering investing in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? why?

In fact, three main countries are China, Russia and Germany, but the car company is also faced with difficulties if it wants one of three.

The car industry is considered to be very strong in Germany.

If the company decides to invest in Germany, other rivals must face it. Trade barriers in Russia would also prohibit the automotive industry from joining.

But with minimal-cost labour in China and the huge domestic opportunity, it makes direct foreign investment an enticing spot.