The pros and the cons of investing abroad
Dissertation : The pros and the cons of investing abroad. Recherche parmi 300 000+ dissertationsPar Jkwife44 • 21 Janvier 2018 • Dissertation • 304 Mots (2 Pages) • 861 Vues
The pros and the cons of investing abroad
Intro:
On the one hand, investing abroad has many advantages for companies and countries. With the globalization, the trade market has no borders. On the other hand, there are harms, especially when it comes to the country’s economic policy. Consequently, we make the pros and the cons of investing abroad for companies.
- The pros
Grow the business:
The opportunities of investing abroad are many. First, they represent new customers for companies. Therefore, they earn money and it is the way for business to growing up. Afterwards, in some countries, the price of the raw material just as labour force are cheap. The companies will make profits more easily.
Mutual benefits for company and country:
Then, investments allowing to the companies to win market share and finding new technological and commercial partners, by way of example, emerging countries are in heights economic, technological and financial boom. Furthermore, for the host country, the foreign investments are source of economic development and modernization. Also, they are creating employment and contribute to the income development, for emerging countries.
even though investing abroad is very advantageous for companies. there are inconvenient too.
- The cons
The cost of investment:
Investing abroad has cost: The products are generally taxed; the taxes can be high in protectionist countries and there may be fees barriers. Moreover, the products must be adapted for countries which have certainly different norms and the adaptation requires money.
Difficulties to enter some countries and some sectors:
To protect the competitivity of local companies, some countries limits foreign investments or force foreign companies either with high taxes for the foreign products or partnerships with local businesses. Some countries restrict the access to trade markets. Not all of sectors are accessible for the foreign companies. For example, in India sectors of railways and airlines unattainable.
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