Friday, February 18, 2011

Having Problems with Foreign Direct Investment?

Having Problems with Foreign Direct Investment?

What are some of the barriers?

Leverage. ROI.

It is easy to see that start up costs in some countries are much lower than start up costs in another.

If the other country does not have the physical plant for example, it will be cheaper to build that plant in the other country.

Currency considerations are another factor

Incentives from a country with little industry are greater than they are from a country where you will compete with the locals.

Market penetration. Would people in countries in the region be more inclined to buy from countries in the region or from western nations.

Partnering. It is easier to partner with business in some countries where western technology is not readily available by making that technology available.

Just a few thoughts.




Copyright (c) 2011 Slim Fairview

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