Question

Hudson Manufacturing is an MNE based in the United States with operations in Asia. The firm is considering expansion into the European Union. Executives at the firm are debating whether central Europe or Eastern Europe would be best for the firm. Which of the following best supports a decision to establish operations in Eastern Europe?
a. Hudson wants to implement high performance work system.
b. Hudson plans to staff the foreign facility with local managers.
c. Hudson wants to minimise costs by keeping wages low.
e. Hudson recently lost money in a joint venture Explain each point to the executives as you decide on which point to support

Answer 1

In the question only "option a" is correct which can be defined as follows:

• East Europe has also been able to build an industrial engine thanks to its entrepreneurial spirit. Several large companies have chosen the area as a location to produce their products.
• The decision benefits everyone, not just commercially, even though their motives may differ because of its highly skilled, but cost-competitive labor force, many countries offer products of exceptional quality.
• East European workshops adhere to high moral standards of behavior. East European nations offer tremendous potential for organizations with strong ethical standards, particularly in light of Asian labor issues. This brand can offer 'Made in Europe' goods at a competitive rate because of the lower production costs which are retained.
• Firms can easily access all the gear & supplies they need for the area while lowering its transport costs & spending time on the road. The manufacturers can therefore probably deal with the finest and most established countries in terms of the quality of the products.
• Several East European workshops are eager to provide high standards and are not afraid to go the extra mile. In addition to other benefits, production in East Europe is financially stable.
• As just a result, not only is the labor force in Asia cheaper than in the West and more qualified than in Asia, but corporations can also save a lot on commuting costs. Reduced shipping times from factories result in lower costs, and also increased versatility.
• It's not just a matter of dealing with companies that are already in existence. To attract potential investors to foster the creation of new enterprises, Eastern Countries offer a variety of advantages.

The wrong choices can be defined as follows:

• In "option b", it is wrong because, To expand within the European Union, Hudson doesn't quite intend to hire local executives for the international plant.
• In "option c", To minimize costs, Hudson must maintain high pay; thus it is wrong.
• In "option e", It's the first joint venture wherein Hudson has not lost money. That is why it is bad, and you must explain each position to both the executives as you pick which one to support.

Learn more:

Operations in Eastern Europe: brainly.com/question/4101962