Question

What options are available to the college for expansion ?

• Do you recommend an FPI or FDI in Brazil? Why?
• What advantages does the Brazil give to the new business?

Answer 1

Answer)I recommend an FDI in brazil. FDI means foreign direct investment into a country's Resources and having a long term interest in it. It means that a MNC has a large businesses or manufacturing or acquisition etc in another country. So I would recommend FDI over FPI which is Foreign Portfolio investment that is basically buying securities or bonds of other countries's companies because Brazil is a huge state with several unpenetrated markets and by having a business or acquisition over here could ripe long term profits. Brazil is a developing nation and a FDI here can be hugely profitable in coming years.

Answer) Advantages are as follows -

1) Brazil has the fifth largest population so new business can survive by some research and development that would cater to a certain group or to the whole mass.

2-) Brazil is a liberalised state with ease of laws in international trade, so new business will have ease of importing and exporting goods.

3-) Brazil has one of the sophisticated transport system by which new business will have no problem in supply chain management.