Question

You are a consultant that is in the last round of proposals to become the sole strategic adviser to the CEO of a top 5 global manufacturer of doors & windows. The firm sells and has a local presence in the 100 top ranked countries by GDP. You and the other finalists have been asked to address potential Foreign Direct Investment in a non Top 100 GDP country.

The CEO is seeking for a new high growth market (even if it comes with some political instability) and is asking you to select it. In your post, please provide your country selection and the primary reason why you selected it. Also briefly address how the organization would mitigate one or two major risks associated with FDI.

Answer 1

Ans.

We have selected Nepal as the country for analysis. As per the 2019 ranking by IMF , Nepal is ranked as 101 on GDP in country ranking.

There are geopolitical risks in foreign investment in Nepal. Because of political shakiness, aggravated by the quake of 2015, there is a weak empowering condition for organizations, in spite of the fact that that condition is decidedly evolving.

Some of the challenges in Nepal are , Inconsistency in Nepali Society - There is a major logical inconsistency in Nepali society. Nepali society is engrossed by progressive thoughts. Such society doesn't give regard to capitalist. ork law stayed a colossal issue for investment in Nepal. Investment related laws are old and dispersed. It is frequently extremely hard to make sense of what is the law in Nepal as for a specific point. Foundations like non-inhabitant Nepalis have institutionally called attention to that bureaucratic obstacle is the issue for investment in Nepal.

However I believe that Nepal also offers lot of opportunities in terms of :

- After the earthquake lot of demand in the housing sector for redoing their homes which are strong and durable , this will help our company enormous

- Nepal's manufacturing sector is wealthy in potential, both for enormous scope projects and creative small industries.

- In spite of the fact that Nepal is primarily an agrarian nation, different activities are being taken to stimulate the manufacturing sector, which the government accepts is vital to the nation's financial turn of events.

- The combination of access to a growing domestic demand , gigantic neighboring markets like India and different motivating forces Nepal an appealing investment opportunity.