Intel's Site Selection Decision In Latin America

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. The Telford, International Site Selection Analyst for Intel, needs to recommend a final site. There are two key issues that 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 illustrates the advantages for a high-technology company such as Intel, with its strong need to operate in a country with stable, predictable rules of business, and to invest in a fully consolidated democracy. Teaching direction: 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.