Topic: Foreign Direct Investment

opic: Foreign Direct Investment

Professor's Guidance for this week's LE:

Investing  in the international market is a huge risk for any organization (Peng,  2009). It is key that the company gather historical data on the host  country’s currency value fluctuation and import/export timelines. This  is crucial. The deal you discuss today may not be executed in time to  reap the full potential of the opportunity. You could be (Peng, 2009)  negotiating a deal that may cost 15 percent more in a few months when  the transaction is finalized. Worse yet, you may offer a promotion that  costs you significantly more a week into the offering (Peng, 2009). Lock  in currency rates and delivery dates in advance whenever possible. The  less speculation, the better.

Peng, M. (2009). Global business. Boston: Cengage Learning.

Prompt

For  a smaller country that seeks to improve its overall economy and  economic standard of living for its people, would you recommend that it  accept more foreign investment in the country such as foreign  organizations setting up operations in the country, or would you  recommend that the smaller country simply accept aid from such entities  as the United Nations and the World Bank and avoid foreign investment?  The country cannot do both, so choose one or the other and explain why  you believe it is the best way to stimulate more growth and improve the  standard of living for the smaller country.