Running head: Introduction to International Business
Introduction to International Business
David L Stinson
May 19, 2012
* What is the purpose for foreign investment regulations?
* List and discuss the foreign investment regulations.
* What are 2 issues that concern management when screening potential markets and sites?
* List and discuss the steps in the screening process.
We will attempt to answer several important questions and aspects to foreign investment. These answers will include definition, purpose of regulations, issues that concern management in regards to markets and sites, and the steps taken during the screening process.
LIST AND DISCUSS THE FOREIGN INVESTMENT REGULATIONS.
Since each country has its own foreign investment regulations, it would be hard to try and list each of them from each country. While some restrict certain sectors where foreign investment is not allowed, others allow investment in specific sectors only after governmental review and approval. Also in some countries in certain sectors an informal approval is required before the application process can even begin. (GAO, 2008) The table below, prepared by the GAO, shows a comparison of some countries in regards to the foreign investment review process.
WHAT ARE 2 ISSUES THAT CONCERN MANAGEMENT WHEN SCREENING POTENTIAL MARKET SITES?
Two issues that concern management are the demands for product in those markets and sites as well as the business environment in those sites. Essentially demand means the quantity of its products it will be able to sell and the price it will be able to realize for its products. Similarly, the business should consider the social forces, economy, political environment, legal environment, technology, and any factors related to industry. (Graham, 2005)
LIST AND DISCUSS THE STEPS IN THE SCREENING PROCESS.
* The demand should be accessed through a process of evaluation. Finding the problems that the customers are facing.
* If the marketer is able to offer a...