Midwest Electrics

Midwest Electrics has three countries as options to expand in the Asian market. To look for one of the best option to consider out of these three we need to the quantitative and qualitative analysis. The first factor is the labor cost and exchange rate. Considering the three options India is by far the best option in terms of the labor cost. Power outage is very common in India. However, company can look for the more developed area as well as solar plants to mitigate the issue.  Considering intellectual property security and corruption, Singapore is the safest place to expand. When companies go global, language is one of the main barriers they face. Singapore is the one of the country with highest number of English speaking natives. If the cost is not important the best country to expand is Singapore. In quantitative analysis cost should be considered. Annual wages is lowest in India. It decreased by 18% from 2008 to 2009. New build prices in also the lowest in India. With $81 in 2011, it only increased by 4.7 % from 2010 to 2011 as compared to 15% and 38% in China and Singapore respectively. Considering the other working costs lowest in India, lending rates being highest wont make too much difference in longer run. Corporate tax rate is also lowest in India. India also supports the foreign direct investment. I think keeping all these things in mind; India will be the best option to expand as the cost associated will be lower in the future.

Cost based Analysis:

The first table shows the actual cost calculated based on the area needed and price given in the tables. We have three options:

Second table shows the total cost including the equipment.