One of the biggest Internet-related strategic issues facing many businesses is A. Whether to have a company Web site B. Whether and how to incorporate use of Internet technology applications in performing various internal value chain activities C. Whether to form a strategic alliance with a pure dot-com enterprise E.
There are various levels and forms of foreign direct investment, depending on the type of companies involved and the reasons for investment. A foreign direct investor might purchase a company in the target country by means of a merger or acquisition, setting up a new venture or expanding the operations of an existing one.
Other forms of FDI include the acquisition of shares in an associated enterprise, the incorporation of a wholly owned company or subsidiary and participation in an equity joint venture across international boundaries. If you are planning to engage in this kind of venture, you should determine first if it provides you and the society with maximum benefits.
One good way to do this is evaluating its advantages and disadvantages. List of Advantages of Foreign Direct Investment 1. Commonly, a country has its own import tariff, and this is one of the reasons why trading with it is quite difficult. Also, there are industries that usually require their presence in the international markets to ensure their sales and goals will be completely met.
With FDI, all these will be made easier. Employment and Economic Boost.
Foreign direct investment creates new jobs, as investors build new companies in the target country, create new opportunities. This leads to an increase in income and more buying power to the people, which in turn leads to an economic boost. Development of Human Capital Resources.
One big advantage brought about by FDI is the development of human capital resources, which is also often understated as it is not immediately apparent. Human capital is the competence and knowledge of those able to perform labor, more known to us as the workforce.
The attributes gained by training and sharing experience would increase the education and overall human capital of a country. Its resource is not a tangible asset that is owned by companies, but instead something that is on loan.
With this in mind, a country with FDI can benefit greatly by developing its human resources while maintaining ownership.
Parent enterprises would also provide foreign direct investment to get additional expertise, technology and products. As the foreign investor, you can receive tax incentives that will be highly useful in your selected field of business. Foreign direct investment will allow resource transfer and other exchanges of knowledge, where various countries are given access to new technologies and skills.
Reduced Disparity Between Revenues and Costs. Foreign direct investment can reduce the disparity between revenues and costs. With such, countries will be able to make sure that production costs will be the same and can be sold easily. With more jobs and higher wages, the national income normally increases.
As a result, economic growth is spurred. Take note that larger corporations would usually offer higher salary levels than what you would normally find in the target country, which can lead to increment in income.
List of Disadvantages of Foreign Direct Investment 1. Hindrance to Domestic Investment. Risk from Political Changes.
Because political issues in other countries can instantly change, foreign direct investment is very risky. Plus, most of the risk factors that you are going to experience are extremely high.
Negative Influence on Exchange Rates. Foreign direct investments can occasionally affect exchange rates to the advantage of one country and the detriment of another.NovaQuest Capital, which has $ billion under management, on Wednesday said it is acquiring Triangle-based Viamet Pharmaceuticals, which is focused on anti-fungal technology.
entrepreneurial venture, the focus of business strategy is on the The entrepreneur planning a new venture or the management of the competitive advantages, organizational form, process, structure and culture demand a balancing of the economic and the entrepreneurial.
Everwealth Paper Industries (Shanghai) Co., Ltd. is a company that manufactures and processes corrugated carton board.
The company, wholly owned by an U.S. entity, is located in the industrial zone of Songjiang District, (25km southwest from the center of Shanghai), in Shanghai. Management of New and On-going Ventures Essay Nanyang Technological University Nanyang Technopreneurship Center ET Management of New and On-going Ventures Batch 34 / Group 2 Name: Adhimoolam Anusha – UL Chua Yun Hui Joy – UA Nayana Rao Poluru Mastan – UG Prashanth Somanathan – U Meera Darshini Ratty – UJ Yu Anqi – UJ .
As the traditional avenues of corporate growth become less attractive, many companies find the appeal of new venture strategies harder to resist.
TSYS will form a merchant acquiring joint venture with First National Bank of Omaha (FNBO) through the creation of a new company, First National Merchant Solutions, LLC (FNMS).