Factors That Attractiveness of a Country for Foreign Investors

In: Business and Management

Submitted By wxue6
Words 1236
Pages 5
1. Introduction

Assessing the attractiveness of entering into a country is a scientific system full of logicality. The argument says to assessing the attractiveness refers to reviewing its market, resource and competitive opportunities. This is a kind of one-sided statement because there are numerous of other perspective which are ignored. To be specifically, to assessing the attractiveness of entering into a country comprehensively, it is necessary to consider three main perspectives: country and market opportunities, country risks and competitive analysis. This essay will be discussing those three main aspects and its details with related examples and theories to explaining how to evaluating country’s attractiveness in investment perspective.

2. Country Opportunity

The argument mentions market and resource can be considered as a part of country and industry opportunities which influence the attractiveness of a country. For example, economic growth is so much important to be considered before making decision to interning a country. Groh and Wich (2009) states their research illustrate that market size is one of key factor for the Central European transaction economics like Hungary, Poland and Slovakia. Furthermore, by the development of developing countries, emerging markets shows more and more attractiveness because of market and demand growth (Mello, 1997). Also, with the high level technology innovation environment and raw materials, it shows higher attractiveness for foreign investment. These resources highlights a country’s productivity power which brings a good view for most companies in long term perspective (Shan & Song, 1997). However, only introduce market and resource is not enough to analyses all factors related with country and industry opportunities aspect. It is so necessary to consider that incentive and competition factors. More…...

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