Intel's Site Selection Decision in Latin America
Case number:
A03-99-0016
Abstract
Intel has decided to locate its next assembly and testing plant in Latin America. Four countries have made the short list: Brazil, Chile, Mexico, and Costa Rica. Ted Telford, International Site Selection Analyst for Intel, needs to recommend a final site. There are two key issues which must be resolved first: 1) what kind of business environment is most suitable to Intel's needs; and 2) how can Intel leverage its bargaining advantages most effectively. The case demonstrates the importance of bargaining and of operating in a country with stable, predictable rules of the game.
Teaching
This case can be used in a number of different contexts. One use is in a survey course on the business environment of Latin America. Under these circumstances, the case is best used after the class has already discussed democratization and has covered Brazil, Mexico, and Chile. The case can then be used in the context of a discussion of theories on bargaining between transnational corporations and host-country governments.
Case number:
A03-99-0016
Subject:
Business
Government
International Policy
Year:
Setting:
Latin America, 1996
Length:
16 pages
Source:
Field case