Economics Question Analysis of Foreign Direct Investment

Question

Analyze a developing and a developed country as a possible site for a ‘greenfield’ foreign direct investment.  You selection of countries should be limited to the following choices:‘Developed’: Brazil

Assume that you are responsible for a large Australian manufacturing firm that is keen to internationalize by a ‘greenfield’ foreign direct investment via sole ownership.  Consider the issues that would help you make such a business decision.  For example –

• What are the advantages and disadvantages of investing in each country?
• How does the legal system affect business?
• What political, cultural and economic risks apply?

Summary

The topic is from economics. It deals with foreign direct investment. 3 questions about whether or not foreign direct investment is actually feasible. In this case, the country chosen has been Brazil. Several advantages and disadvantages of directly investing in Brazil have been discussed in the answers.

Total word count is 1336