Picture yourself as a corporate president who is about to decide on making a foreign direct...

Picture yourself as a corporate president who is about to decide on making a foreign direct investment. What questions should you ask yourself?

Expert Solution

The important questions l should ask my self when l get an opportunity to decide on a Foreign direct investment are as follows?

1 What is the risk taking capacity of my company?,

2 Will the corporation be able to withstand a loss if the entire investment plan fails?

3 What are the profit prospects of the investment?

4 what are the legal formalities associated with the investment in the foreign country?

5 How far it (legal procedures) differs from the domestic nation?

6 will my company be able to capture the market ?

7 what are the ways to tackle the local competition?

8 ls it necessary to understand the cultural implications of the sales process?

9 ls it necessary to adapt to the local culture?

10 what is the exchange rate,monetary regime,inflation level of the country in which the investment in being made and how developed is the country's credit market?

(Note: the last question can be split into different questions)

Rahul Sunny answered 8 months ago

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