Your CEO thinks that it is too risky to invest in more than 2 countries and has

Question

  Your CEO thinks that it is too risky to invest in more than 2 countries and has already selected 2 other countries (the United States being one of them) besides your chosen foreign country to invest in. She bases this on the notion that with the company’s last experiences with other products, the results of dealing with many countries at once has been mixed at best. You think that she is making a critical mistake but must be diplomatic and respectful to her. In the process, you are to do the following:

1 Provide a compelling argument to your CEO that including your company’s FDI in your chosen foreign country is a promising opportunity.

2 Explain relative internalization advantages in the process.

3 Explain the realities and benefits of FDI in your chosen foreign country from a free market view.

Explanation / Answer

The other nation is india,and the other is United states,

1. According to the Indian Government condition foreign companies have a source of minimum 30% of their goods from Indian micro and small scale industries. This will encourage the domestic manufacturing of the nations by creating a very big effect for various employment and technology up gradation and income generation of the many people.
2.The thought of expansion in retailing is common, as it can lead to various financial opportunities for us as a business owner. Expanding internationally can sometimes be more profitable venture, while many other businesses have flopped when they took the approach. Before expanding our business internationally, weigh some of the pros and cons has to be involved.such as:

3.

1. Boost Economic Life of individuals

This is one of the major sectors in which it is enormously benefited from foreign direct investment. A favourable inflow of FDI in various industrial units in many countries has boosted the economic life of country.

2. Increase level of competition among companies

FDI will increase level of competition in market. They have to improve the quality of products and service in order to stay in active in the market. Any foreign company either directly can enter into the market or through Joint venture and collaboration.

3.Technology Advancement:

This will be an added benefit to the sector of retail by enhancing the technology from other nations

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