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julianjeremy
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Registrato: 25/06/19 03:33
Messaggi: 7
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Properly managed FDI could make high returns. However Solo gli utenti registrati possono vedere i link!
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requires an extensive research and investment therefore puts high of capital at risk. Moreover, if company will not perform in addition to expected, it may have difficulty selling the overseas project it created. Presented these return and risk characteristics of DFI, Companies must conducts country risk analysis to view whether to make investments into a particular country or not necessarily.
Country risk analysis Solo gli utenti registrati possono vedere i link!
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can be used to see countries where the MNCs is doing or planning to try and do business. If the a higher level country risk of a particular country begins to boost, the MNC may look at divesting its subsidiaries to be found there. Country risk might be divided into country`s political and also financial risk.
A severe way of political risk is the reality that the host country will require over a subsidiary. In most cases, some compensation will be paid because of the host government. In another cases, the assets will be confiscated Solo gli utenti registrati possono vedere i link!
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without compensation. Expropriation normally takes place peacefully or simply by force.
Beside political elements, financial aspects need being considered in assessing country risk. One of by far the most clear financial factors could be the current and potential state with the country's economy. An MNC that exports into a foreign country Solo gli utenti registrati possono vedere i link!
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or operates a subsidiary as country is highly motivated by that country's demand for its products. This demand is usually, in turn, strongly influenced because of the country's economy. A recession as country can reduce demand for MNC `s exports or goods made by its subsidiary.
Economic growth indicators rightly or negatively can impact demand for products. In particular, a low interest rates boost economy ad maximize demand for MNCs` things. Inflation rate influence customers purchasing Solo gli utenti registrati possono vedere i link!
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power therefore their demand for MNC`s goods. |
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