International Business Environment
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What are the advantages and disadvantages of foreign ownership of public utilities such as electricity, water supply, airports, harbors, and so on?
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Solution Summary
This solution explains the advantages and disadvantages of foreign ownership of public utilities.
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The main advantage is that public utilities will almost always remain profitable. In countries where public utilities are used, the country has essentially created a situation where all (or most) of the residents rely on those utility providers. In many countries, it would be considered a low risk investment from a domestic standpoint, due to the continual flow of cash into those types of companies. Because technology is always progressing, we will not see a reversion where ...
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