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There are several reasons:
- Cheap labor costs
- Closer to Natural Resources
- Favorable laws and regulations
- Enters a potential market => increased customer base
- If setting up the business => eliminate need to pay tariff.
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∙ 13y ago
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Advantages And Disadvantages Of Foreign Investment?
If you want to make a bit of money, one way to go about doing it is to consider foreign investment. This is where you put your money into the stocks of foreign companies to make money as their shares increase. There are companies all over the world where this is possible, so you have a lot of different options for how you want to use your money. There are some advantages to foreign investment, but there are a number of disadvantages as well. You should weigh them both before you make any sort of decision about what to do with your money. One advantage of foreign investment is that it gets your money out of the bad economy in the United States and into the foreign market. Even though the United States has been on a downward swing as of late, other countries are going strong; this is where you want your money to be to have the most success. Another advantage is that you get a lot more options this way and can find businesses to invest in that your really believe in. You can find businesses in other countries that may be very small on the world market but that you feel will grow tremendously in the future. By getting in while the company is not worth very much, you can set yourself up to make quite a lot of money. One of the disadvantages is that you cannot check the company out for yourself in the same way that you could check out a local company -- unless, of course, you decide to take a trip to the foreign country and stop in to see what they are really like. You can do this if you invest in companies that are close to you, and it can help you to get a feel for the company's future. Being able to talk to the owner and see the operation may show you that a company is geared for success, but you cannot do this if the company is located in another country. Researching online before doing any sort of foreign investment can be a good way to fill some of these holes.
What is a major problem with Africa's economy?
Due to unstable political systems and ethnic conflicts, many developing African countries cannot maintain sufficient capital (including foreign investments), leading to price fluctuations for imported and exported goods.
How does liberalisation of trade and investments policies helped the globalisation process?
Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and investment easier. Earlier, several developing countries had placed barriers and restrictions on imports and investments from abroad to protect domestic production. However, to improve the quality of domestic goods, these countries have removed the barriers. Thus, liberalisation has led to a further spread of globalisation because now businesses are allowed to make their own decisions on imports and exports. This has led to a deeper integration of national economies into one conglomerate whole.
What are the factors that affect the growth Multinational Corporations?
1. Innovations: Since MNCs processes adequate research and development facilities,they develop new product and make new designs of existing product.Thus they have greater production opportunities. 2.Market facilities: MNCs enjoy a number of market superiorities over the domestic companies.These includes a.reliable market information, b.effective advertising, c.goodwill, d.efficient warehousing facilities etc over the national enterprises. 3.Technological advantages: MNCs are rich in advanced technologies.The rich financial and other resources of the MNCs enable them to invest in research and develop advanced technology. 4.Financial superiority: MNCs have huge financial resources.They can use funds more effectively.They have easy access to external capital markets.
What do siberians depend on as their chief economic earner?
use it to make money to help satisfy their county's need by producing goods to sell to other countries [foreign exchange]
What does the world bank hope will result from the loans it make from developing countries?
An improved climate for foreign investment
Who has the constitutional authority to make a treaty with foreign countries?
the Senate
How did viking warriors make fortunes?
raiding foreign countries
What type of power is the power to to make treaties with foreign countries?
exclusive
What type of power is the power to make treaties with foreign countries?
exclusive
What type of power is power to make treaties with foreign countries?
Exclusive
Who has the power to make treaties with foreign countries?
The president, with the advice and consent of the senate.
Was tariff a tax on imported good?
Yes, so the government could make money off of imported goods shipped from foreign countries. Yes, so the government could make money off of imported goods shipped from foreign countries.
Can the vice president make treaties with foreign countries?
The US President has the Constitutional authority to make foreign policy, with the advice of the Senate, who must approve all treaties.
Who has the power in the US to make treaties with foreign countries?
the executive branch almost 100% sure
Advantages And Disadvantages Of Foreign Investment?
If you want to make a bit of money, one way to go about doing it is to consider foreign investment. This is where you put your money into the stocks of foreign companies to make money as their shares increase. There are companies all over the world where this is possible, so you have a lot of different options for how you want to use your money. There are some advantages to foreign investment, but there are a number of disadvantages as well. You should weigh them both before you make any sort of decision about what to do with your money. One advantage of foreign investment is that it gets your money out of the bad economy in the United States and into the foreign market. Even though the United States has been on a downward swing as of late, other countries are going strong; this is where you want your money to be to have the most success. Another advantage is that you get a lot more options this way and can find businesses to invest in that your really believe in. You can find businesses in other countries that may be very small on the world market but that you feel will grow tremendously in the future. By getting in while the company is not worth very much, you can set yourself up to make quite a lot of money. One of the disadvantages is that you cannot check the company out for yourself in the same way that you could check out a local company -- unless, of course, you decide to take a trip to the foreign country and stop in to see what they are really like. You can do this if you invest in companies that are close to you, and it can help you to get a feel for the company's future. Being able to talk to the owner and see the operation may show you that a company is geared for success, but you cannot do this if the company is located in another country. Researching online before doing any sort of foreign investment can be a good way to fill some of these holes.
Does Japan have foreign investments?
It could make deals with other countries just like the United States.
