Hi anyone knows of some factors that would affect investment or foreign direct investment in a country?
Answer:
Exchange rate (needs to be competitive and deregulated)
Size of domestic market (larger helps)
Rules and regulations (fewer = more FDI)
low labour costs
attractive labour market e.g. plenty of graduates, low social security taxes on employers, easy hiring and firing laws
clear business legislation, preferably pro-business
low profit taxes
little or no corruption
freedom to export capital (the investor has got to be able to get their money out)
political stability (I mean basic, governments can change democratically, even coups are OK if they're like in Thailand, but not turmoil like Somalia or Iraq)
no wars
no wars in the next door country either
good basic infrastructure (schools, hospitals, roads and so on) and telecommunications (eg plenty of broadband internet connexions)
plenty of graduates who can do business in English
natural resources like copper and oil (oil cos will work in godawful places that no-one else wants to know)
Many things. Depends on the company or industry.
The world economy, the monetary exchange rates, the political climate in that country and in your home country. Cost of materials in that country, Other economic data, consumer confidence, etc. in that company.
Mostly, depending on the country, your main worry is about the strength and stability of the company, though. Check them out. If it is a fund, see how it's performed over the years.
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