Case study: Negotiations – India and Sat-Store
City population: Size of the city in which Sat-Store will be located.
Size of Foreign Direct Investment: In facilities such as warehouse, distribution, refrigeration and storage.
Insourcing: What percent of Sat-Store’s total no of products will be sourced from within India.
Supplier size: The size of the insourcing supplier is determined by its investment in machine and factory. Larger size supplier will give more options to Sat-Store for sourcing.
Management Control: Taking management control (ie > 50% of the Indian share) means the rights to appoint a majority of Sat-Store’s directors or control the management/policy decision.
Remittance of US $ to Head Office: The percentage of Sat-Store’s net profit will be sent to its HO after meeting all its tax obligations in India.
1