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Capital Projects in Foreign Countries - Caribbean

1. Discuss a situation where a Capital Project in a foreign country with excellent business potential might not be to the advantage of the Parent. Discuss this from the standpoint of Cash Flow, Currency Convertibility, Repatriation, and other Country Risk Factors.

2. Select a topic of your choice relating to global business.

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Dear Student,

Here is a view of investment in the Caribbean for you to consider.

Capital Projects in foreign countries require lager capital investments which are expended in the creation of infrastructure and maintenance of that infrastructure. An example of a project with excellent business potential which might not be to the advantage of the Parent company considering the undertaking would be a hotel project. In today's globally depressed real estate market, there are governments in such regions as the Caribbean which have been negatively and profoundly affected by stilted tourism. This is of great impact because these island economies rely mainly on tourism and it's supporting industries, in which usually account for 80% to 90% of their GDP. Governments have been driven so sell hundreds and in some cases, thousands of acres of prime beach lands in an effort to attract investors and provide jobs in failing economies. The opportunity cost can be high in such scenarios such as purchasing government ...

Solution Summary

Capital Projects in foreign countries require lager capital investments which are expended in the creation of infrastructure and maintenance of that infrastructure. An example of a project with excellent business potential which might not be to the advantage of the Parent company considering the undertaking would be a hotel project. In today's globally depressed real estate market, there are governments in such regions as the Caribbean which have been negatively and profoundly affected by stilted tourism. This is of great impact because these island economies rely mainly on tourism and it's supporting industries, in which usually account for 80% to 90% of their GDP. Governments have been driven so sell ...

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