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Identify and describe the 5 most important factors that a company should prioritize when deciding to...

Identify and describe the 5 most important factors that a company should prioritize when deciding to invest in a particular country and defend your choices.

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Answer #1

Some of the important factors are :-

  • Economical stability: The country which a company going to invest should have a sound economical background. It depends on various internal and external factors like financial stability, policies from government and demographic situations .
  • Political situation: Governent policies have vital role in promoting investment in a country and some countries provide tax benefits and attractive offers for foreign investment and some may not.
  • Market potential : This depends on disposable income capabiility, level of competition for particular industry etc.
  • Growth opportunity: Over the period of time proper forecasting approach is needed which can analyse is there any potential growth in investment
  • Defensive barrier: Labor union , strikes or other economical barriers .
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