Foreign Direct Investment & Regulatory Environment

University of PhoenixMGT 448 Global Business StrategiesMarch 16th, 200 This idea will discriminate the irrelevant require enthronization environment and regulations of Aruba, Haiti, and Domini female venereal organ Republic. The institution is considering opening a naked pulverization in the Caribbean, and focus is in the process of evaluating the specific bucolic locations for this direct investment. This paper will define foreign direct investment and hold forth the advantages and disadvantages. The paper will excessively relate the stage of foreign direct investment to line of descent opportunities. One variable normally used to measure where and how firm internationalization is taking turn out is the increase in total foreign direct investment (FDI). According to Hill, 2009 ? outside(prenominal) direct investment (FDI) occurs when a warm invests directly in facilities to produce or market a product in a foreign soil? (p. 242). FDI can provide an brass instrumen t with new markets, less expensive facilities, and access code to new products, financing, and skills. There are advantages to FDI into countries such as parentage exploitation in a depressed country, financial obtain to the country?s economy, education of the citizens, and inexpensive labor cost for the cheek moving into a specific country thusly star to a higher profit. The disadvantages of FDI are too often harvest-time in a short time bound atomic number 82 to overcrowding and pollution of a city, increased crime, and a redness of culture.

Political, Legal, and restrictive Environment for ArubaThe island of Aruba is located in the middle of the southerly Caribbean near 15 miles off the coast of Venezuela. The island! is 19.6 miles long and 6 miles crossways at its widest point, with a total area of approximately 70 square miles. The political environment in which Aruba operates is parliamentary Democracy. This is a political system in which the parliament selects the prime pastor and eight member cabinet. This type... If you want to get a entire essay, order it on our website: OrderEssay.net

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