This report is a synthesis of the facts presented in the Intel's Site Decision in Latin America. Based on the conducted analysis, Costa Rica is chosen among the four countries considered (Chile, Brazil, and Mexico) as the most viable site for Intel's production of microprocessors.
However, as only one country needs to be chosen, Intel should consider the benefits and risks associated with manufacturing and operating in either of these countries.
It should be noted that Intel's main concern in opening a microprocessor manufacturing plant in Latin America is to strengthen its position in the global market. The rationale of choosing a Latin American country is to distribute risk as it already has a number of production plants in Asia. Also, the preference of a Latin American country is its proximity in the US where the microprocessors will be shipped. Most importantly, Intel is also aware of the more intense rivalry between players in the global market which significantly drives down the price of microprocessors. The company is very concerned with finding a possible way of reducing the cost of production in order to offer the final products at a more competitive rate.
Aside from these considerations which were directly mentioned by Intel, the case also developed the idea that the company prefers a country where its expatriate employees who will be in operation and supervision of the manufacturing plant during the start-up stage will be comfortable in the selected site. Also, Intel also explicitly stated its preference for a deal which is done in a transparent and legal way. ...