What factors , other than tax incentives, should companies evaluate before deciding to invest in a particular country ?

Business

1 answer:

Reptile [31]3 years ago

7 0

Two main risk sources need be considered when investing in a foreign country:

Economic risk: This risk refers to a country's ability to pay back its debts. A country with stable finances and a stronger economy should provide more reliable investments than a country with weaker finances or an unsound economy.


Political risk: This risk refers to the political decisions made within a country that might result in an unanticipated loss to investors. While economic risk is often referred to as a country's ability to pay back its debts, political risk is sometimes referred to as the willingness of a country to pay debts or maintain a hospitable climate for outside investment. Even if a country's economy is strong, if the political climate is unfriendly (or becomes unfriendly) to outside investors, the country may not be a good candidate for investment.

I hope my answer has come to your help. Thank you for posting your question here in Brainly. We hope to answer more of your questions and inquiries soon. Have a nice day ahead!

You might be interested in

A business plan should be rewritten every three to five years true false

Kisachek [45]

The answer would be True.

6 0

3 years ago

Read 2 more answers

The country of Alaine produces 1,000 tons of corn during a year. It is valued at $500 per ton. A lobbyist for the corn industr

Debora [2.8K]

Answer:

D. Corn is not used in the production of other goods.

Explanation:

D is the only option that can be an argument for the total value of the corn produced to be included as corn for the same year in the GDP.

This is due to the fact that only the final production is recorded in the GDP, this means that no goods are registered that are going to be part of other productive processes (generally raw materials) since double accounting would be incurred.

If for example, corn were part of another productive process and this productive process begins next year, that part of the corn used to produce that good would be included in the GDP of the year in which the product will be produced (the one that corn is used in the production).

This means that the lobbyist can only rely on option D (include all the value of corn for the year in which it was produced) if in this country the corn is not part of another productive process.

5 0

3 years ago

A public good is an example of a _____.

Alona [7]

A public good is an example of a good or product that individuals can consume or use without reducing its total availability for others. Goods like national security, sewer systems, public parks, among others, are considered as public goods. Many can benefit from it and it is considered by economists as goods that are "non-rivalrous" or "non-exclusive."

6 0

3 years ago

Justify the reasons why businesses use team dynamic theories to understand team performance.

DIA [1.3K]

Team Dynamic Theories analyze how each team members could positively affect each other.

By knowing this information, you could know what cause the positive team dynamic within your team members so that you could utilize it or enchance it even more

8 0

2 years ago

Explain how changes in interest rates and rates of return on various investment options will affect the amount of money that bus

Paul [167]

Answer:

Interest rates represent the opportunity costs of investors. If the interest rates are too high, then the opportunity cost of making an investment increases, since the investor could simply decide to purchase Treasury Bonds, corporate bonds, or put the money on a CD. As interest rates increase, total output decreases since investment in new projects decreases.

On the other hand, if interest rates lower, the opportunity cost of investors decrease. Investors will be willing to invest in new projects instead of purchasing Treasury Bonds, corporate bonds, or put the money on a CD. As interest rates decrease, total output increases since investment in new projects increases.

Explanation:

4 0

2 years ago