Exporting to versus Investing in Fiji: A Comparative Advanta

Lawny’s Construction and Heavy Machinery Inc. will begin to explore export and FDI opportunities into the island nation of Fiji. It is our understanding that the country is in need of construction equipment. We are going to be looking into the pro’s and con’s of this export or FDI opportunity in the report in front of you. The HS number for this machinery is going to be 98170050. We are mainly going to try to ship over heavy earth moving machinery and dump trucks and anything else that we find might be suitable for land development in this region.

Comparison of Lawny’s Construction and Heavy Machinery Inc. with other U.S. companies in this industry sector

After doing some research I have found that there is a great deal of interest in providing some opportunities for land development in the island nation of Fiji. It seems that the economy is on the up and up and there is also great opportunity because of the fact that Fiji is a very large tourist attraction. There is going to be a need for our machinery and equipment in order to fulfill the needs for land development. I figure that if we can supply this nation with our assets that it will be very beneficial for our company. We need to begin expor

. . .

View the whole essay, without interruption

Although these people do lease the land to outside sources. About 84% of the land in Fiji is owned by indigenous Fijians and cannot be alienated. Most of the companies are just exporting parts and accessories for the machinery.

Present and future market potential in the country for the product or service

There is no question about the likelihood of people or persons purchasing our product. On of the main issues of dispute is land tenure. Fiji is one of the most developed of the Pacific island economies, although it remains a developing country with a large subsistence agriculture sector. has provided Fiji with development, technical and financial assistance in a wide range of areas covering agriculture, fishing, education, health, aviation and disaster preparedness programs. If shares or other securities of businesses in Fiji are to be issued to a non-resident, prior approval must be obtained from the Reserve Bank of Fiji.

C) Of these two alternatives it is my opinion that FDI or a contractual arrangement in the nation of Fiji would have to be our best alternative.

There may be a couple of obstacles to overcome to actually get this idea in motion. This nation is going to have to develop a lot more in order to satisfy these needs. The ethnic division is illustrated by the contrast between the private and public sectors; Indo-Fijian families largely control most private businesses, while indigenous Fijians largely head the government ministries and the armed forces. If we could set up a joint venture with an already existing manufacturing plant in the region I think this would work best for us. It is also mentioned that the Government issues tax breaks to foreign companies investing within their borders. It is not going to be cheap but the rewards will be well worth it.

Approximate Word count = 2482
Approximate Pages = 10 (250 words per page double spaced)

Simply subscribe to view this paper, and 100,000 others.