Individual Project 4
overseas Investments
By
Opal S. Steele
American Intercontinental University Online
3 July 2011
Abstract
This report card defines unusual garbment and its purpose. It lists and discusses overseas investing
regulations. It explains two concerns instruction has when screening potential markets and
sites. This paper also discusses in this screening process.
Foreign investment is a crucial economic process, during which foreign state and private
companies and enterprises invest capital, technology, and innovations into the companies of
another country (Foreign Investment.com, 2009). This form of investing can entrust a firm with
cheaper production facilities, access to new technology, products, processes, capital, and
management skills. Opponents of foreign investment state that multinational conglomerates are
accustomed great ply over weaker and smaller economies and have the power to drive out too much
local competition. Proponents of foreign investment point out that the investment flows benefit
some(prenominal) the home country and the host country (Graham, 2004).
Foreign investment is the second major way firms participate in transnational business.
The purpose of foreign investment is 1.
) to reduce the firms costs. These costs complicate
production, logistics, the availability of natural resources, and the access to bouncy technology. 2.)
access to new customers, obtaining marketing advantages through local production, exploiting
competitory advantages, and to maintain nearness to customers as they adapt their operations. 3.)
political considerations. Foreign investment can be used to avoid hand barriers of the host
country (Course Material, 2010).
Foreign investment regulations are received to create a legal framework that will solicitation
to and put foreign capital to work. Foreign investment regulations include promoting local
productivity and technological...If you want to get a all-embracing essay, order it on our website: Orderessay
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