This professional report will be presented to the executive management team and the Board of Directors.

Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to the National University’s Academic Integrity Policy.     

Length: 3-5 pages, not including title page and references

References: Please use the concepts from the Peregrine Modules and two additional scholarly sources for support throughout your proposal. Other reliable sources may also be used.  ONLY SCHOLARLY AND PEER REVIEWED ARTICLES ARE ALLOWED.

Grading

This assignment is worth 7 points

XYZ Company sells clothing and other apparel and has decided to expand its operations globally. It will examine options to manufacture and sell its products in other countries besides the United States. As the project manager in charge of overseeing global initiatives, you have been asked to research three possible countries in which to start operations for this company.

Instructions

1. Analyze and compare each country regarding possible barriers to entry, laws that could affect the move, international law that may play a role in the move, and e-commerce considerations.

2. Choose one of the three most appropriate countries to conduct this expansion. Discuss a globalization strategy, global competitive dynamics, and the process recommended for entering the foreign market. (Transnational, Global, multi-domestic)

SOLUTION

Assessing Globalization and the Legal Environment for Expansion of XYZ Company

Introduction

As XYZ Company prepares to expand operations globally, it must assess potential legal, economic, and e-commerce environments in target markets. Global expansion presents opportunities for growth, but also challenges, particularly regarding legal compliance, trade regulations, intellectual property protections, and digital commerce laws. This report analyzes three potential countries for expansion—Mexico, Vietnam, and Poland—based on relevant international legal frameworks, barriers to entry, and strategic alignment. A recommendation is made for the most favorable market, including a recommended globalization strategy and entry method.

Country Analysis

1. Mexico

Barriers to Entry:
Mexico is a member of the USMCA (formerly NAFTA), offering favorable trade terms with the United States. However, high levels of bureaucratic red tape, corruption in some government sectors, and infrastructure limitations can pose operational challenges (OECD, 2021).

Legal Environment:
Mexico’s legal system is based on civil law. Foreign investment laws allow for 100% foreign ownership in most industries, including retail and manufacturing. However, labor regulations are strict, particularly regarding union activity and employee severance (Peregrine Modules; US Department of State, 2023).

International Law:
Trade dispute resolution follows USMCA protocols. IP protections have improved under recent reforms, though enforcement can still be inconsistent.

E-commerce Considerations:
Internet penetration in Mexico is growing, and mobile commerce is widely used. Mexico has data protection laws aligned with the GDPR model, such as the Federal Law on Protection of Personal Data.

2. Vietnam

Barriers to Entry:
Vietnam offers a low-cost manufacturing base and is part of the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), making it attractive for apparel manufacturing. However, foreign firms face challenges due to state-owned enterprise competition, land ownership restrictions, and lengthy business registration processes (World Bank, 2023).

Legal Environment:
Vietnam’s legal system is socialist civil law. Foreign direct investment is encouraged in industrial zones but requires strict licensing. Labor laws are improving, but wage increases and compliance costs are rising.

International Law:
Vietnam adheres to WTO rules and CPTPP standards, but legal enforcement can be inconsistent, particularly in rural areas.

E-commerce Considerations:
E-commerce is rapidly growing, particularly among younger consumers. However, cybersecurity laws impose data localization requirements, and foreign entities may need local partners for full digital operation rights.

3. Poland

Barriers to Entry:
As an EU member, Poland provides stable legal and trade frameworks. The regulatory environment supports foreign investment, with minimal restrictions on ownership. However, corporate taxes are moderately high, and navigating the Polish legal bureaucracy can be complex.

Legal Environment:
Poland operates under a civil law system aligned with EU regulations. Labor laws are structured, with clear minimum wage and benefits mandates. Intellectual property laws are robust and well-enforced under the EU framework.

International Law:
As part of the EU, Poland adheres to international treaties on trade, labor, and environmental compliance. Disputes are subject to EU-wide enforcement mechanisms.

E-commerce Considerations:
Poland has high digital infrastructure and consumer readiness. E-commerce laws are aligned with the EU’s GDPR, ePrivacy Directive, and consumer protection regulations, offering a predictable environment for online sales.

Recommended Country for Expansion: Poland

Among the three countries, Poland presents the most favorable environment for XYZ Company’s global expansion. Its stable political environment, strong rule of law, digital readiness, and integration within the European Union make it an ideal candidate. Although labor and tax costs are higher than Vietnam or Mexico, the legal predictability, intellectual property protections, and access to the broader EU market outweigh these concerns.

Recommended Globalization Strategy: Transnational

XYZ Company should adopt a transnational strategy, blending global efficiency with local responsiveness. This strategy allows the company to:

• Leverage global brand consistency.

• Customize product offerings for local tastes.

• Maintain legal compliance through regional subsidiaries.

• Optimize cost and operational scale via centralized support.

A transnational approach is more adaptable than a strict global or multi-domestic model, especially in navigating EU regulations while maintaining brand identity.

Market Entry Strategy

Entry Process:

1. Legal Registration of a subsidiary in Poland through the National Court Register.

2. Establishment of Regional Headquarters in Warsaw to coordinate EU operations.

3. Recruitment of Local Talent to comply with EU labor laws and foster regional insight.

4. E-commerce Launch, complying with GDPR and EU e-commerce directives.

5. Manufacturing Partnerships in Eastern Poland or neighboring EU countries with lower production costs.

This phased entry supports both short-term market responsiveness and long-term scalability.

Conclusion

Expanding into Poland offers XYZ Company access to a strong legal framework, a digitally connected market, and EU-wide business opportunities. By adopting a transnational strategy and using a structured entry process, XYZ can enhance competitive advantage while aligning with international law and market dynamics. This expansion will position the company for sustainable global growth.

References

• OECD. (2021). Economic survey of Mexico. https://www.oecd.org/economy/mexico-economic-snapshot/

• Peregrine Global Services. (2024). Global Business Environment & Strategy Modules.

• US Department of State. (2023). Investment climate statements: Mexico. Assessing Globalization and the Legal Environment for Expansion of XYZ Company appeared first on Skilled Papers.

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