Raffles Medical Group Case Study

1593 Words 7 Pages
1. Introduction
Raffles Medical Group (RMG) is a leading medical group and the largest private group practice in Singapore. As a fully integrated healthcare organisation, RMG owns and operates a network of family medicine clinics, a tertiary care private hospital, dental and Chinese medicine services, insurance services, an educational healthcare institute and a consumer healthcare division (Rafflesmedicalgroup.com, 2015). Since its business is blossom in Singapore, RMG should expand the business and venture into another country like South Korea, besides having representative offices in Vietnam, Cambodia, Indonesia, Myanmar, Russia, and Bangladesh.
2. Body
2.1. Internationalization
Raffle Medical Group should consider running their business
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The powerful export sector is the main reason for economic growth in the country. Although the country is developed in terms of all-round economic health, and good investment, it still encounters weaknesses due to very stringent rules on imports and FDI (Coface.com, 2015). These restrictions are affecting the domestic market, making it internationally uncompetitive. However, Korea has practiced external economic policies and its international responsibilities. Moreover, to promote Korea 's trade relationships, Korea has been implementing policies to reduce import tariffs and to liberalize imports, investment and the service sector. Also, Korea has been exploring several means of promoting international cooperation to satisfy the goal of expanding its role in international economic cooperation (Heritage.org, 2015). 2.2.3. Social
According to TheWorldFactbook (2015), in South Korea, the wages are generally higher than other neighboring countries and the labor force is well educated and highly qualified. Additionally, the country’s literacy rate is one of the highest in the world; however, the country 's low fertility rate is significantly challenging as South Korea is now facing with an increasingly ageing population. Despite the rapid urbanization, government spending on social welfare is rather low.
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The country also has an exclusive constitutional court, which keeps a check on government decisions and law making (Hoffenberg Amsden, 1992). The country earns a very large income from exports, which makes it an attractive destination for FDI. However, Ginsburg (2004) argued that the procedural delays and hostility towards foreign investors act as a discouragement. Nevertheless, South Korea offers foreign investors some impressive incentives in the South East Asian region (En.santandertrade.com, 2015). Among the incentives offered, financial incentives include reductions/exemptions of corporation, local, and income taxes, as well as cash grants for investment in high-tech industries that have brought significant economic

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