Individual nations may have both written and unwritten policies regarding the regulation of investment in the country by foreign businesses. A foreign investor, first of all, must show that its proposed investment meets the criteria of the host state's foreign investment law. That does not, however, end the process of qualifying to make a foreign investment in some countries. Some countries also require that the foreign investor comply with the unstated rules, typically referred to as the operational investment code of the government authority that regulates investment in that nation.
Miecha and Frida have developed a strategic business plan for Saving Drugs Corporation to locate production facilities; distribution networks; and delivery assistance for the manufacture, distribution, and delivery of generic polio treatment drugs in five countries:
People's Republic of China
Before moving forward with the play, they have asked you, their expert business consulting team, to advise them on the regulatory climate for foreign investment in each of these countries. Miecha and Frida intend to use your consulting team's material at a board of directors' meeting. They have therefore asked your team to prepare a script
describing foreign investment regulation in each of those countries.
evaluating whether each country's regulatory approach poses any particular challenge(s) for Saving Drugs Corporation's business plan in that country.
proposing a specific action plan for addressing each challenge so that Saving Drugs Corporation's investment can go forward in an environment where the risks posed by the particular challenges have been minimized.
Choose five from the following list of topics to address in your discussion of each country's regulation of foreign investment and the effect on Saving Drugs Corporation's business plan. Your team may elect to choose different combinations of five topics among the five countries your team is evaluating. The same five topics need not be evaluated for each country:
openness to foreign investment
conversion and transfer policies
expropriation and compensation
performance requirements and incentives
right to private ownership and establishment
protection of property rights
transparency of regulatory system
foreign trade zones/free ports
Miecha and Frida have requested that you support the script with at least 10 PowerPoint slides (two per host nation).
Your team will be graded on the quality of your script notes and PowerPoint presentation.
For more information on creating PowerPoint Presentations, please visit the PowerPoint Lab
I chose Jamaica, I can do the powerpoint but where should I begin with this?
Jamaica is an excellent investment opportunity for the following reasons. The two prominent political parties in the country that is Jamaica Labor Part and the People's National party are emphasizing the role of the private sector and the need for foreign private investment. Currently foreign exchange is encouraged in those areas that earn or save foreign exchange, generate employment and use local raw materials.
In short this means that if Saving Drugs Corporation's business plan can be shown to save foreign exchange, generate employment or use local raw materials then a host of incentives can be availed of by Saving Drugs Corporation.
The incentives include remittance facilities (expropriation and compensation), tax holidays (foreign trade zones), an duty free access for machinery and raw materials imported for the approved enterprises (incentives) Currently free trade zones have been established in investment in data entry, light manufacturing, and garment assembly by foreign firms.
The facilities given by the Jamaican government are as follows: This material is taken from the website: http://e-fpo.fpo.go.th/e-fiscal/" The government's trade policy is very liberal. The only protection for local producers takes the form of limited licensing on a small range of imports. Under the Structural Adjustment ...
Foreign Investment Regulation is discussed in great detail in this solution.