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foreign investment regulations and purpose

Identify the important management issues in the foreign direct investment decision.

1. What are foreign investment regulations and what is it's purpose?

2. What types of issues concern management when screening potential markets and sites?

What are some steps in the screening process?

Solution Preview

It is the role of the manager, to access what country to invest in. I doing that, he/she has to consider economic, political, technological, and level of development factors in the home country.

Important management issues in foreign direct investment include;
1.Economic; A country's ability to meet its financial obligations. That is weather the investing country will be able to repatriate its profits, whether the tax policy of the home country will change or not.

2.Political; A government action or a politically motivated event that could adversely affect profits. A government may decide that all foreign firms should build at least 100miles of highways.
There could also be political upheavals, such as overthrow of government, Violent ...

Solution Summary

This solution provides a detailed discussion of the given international business questions.