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Investment Regulations

In: Business and Management

Submitted By Jcarpenter
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Investment Regulations
Jerald Carpenter
American Intercontinental University
MGMT220-1104A-04
Unit Four Individual Project

Foreign investment is an important part of our economy. There are many benefits to foreign investment in any country. It would be very difficult or impossible today to close the doors to foreign investment. The fact is foreign investment is responsible for providing a great deal of needed capital in this country. This capital is an asset in the continuous modernization and expansion of our manufacturing and other productive facilities. Without investment in our factories and processes we would fall behind in the world market. These investments lead to increased competitiveness within the international community. This flow of money also helps to keep down inflation. The US depends on this investment capital to make up for lacking domestic capital (Richardson, 1989).
The countries of the world are increasingly interdependent on one another. With this interdependency among nations also comes more competition, which cannot be taken for granted. Though it is healthy to have foreign investment, too much unregulated investment could be damaging. There must be regulations to protect the US, or any country from seeing diminished control over its own assets. The same holds true for US investors abroad. With the interdependence between countries, it is healthy for businesses to have investments in foreign markets. Other countries depend on this capital as well, but are also wise to somewhat regulate foreign investment in their country (Richardson, 1989).
Each country has its own criteria for what regulations are needed. Economic security, physical security, and cultural policy are all areas that influence these regulations. Though the specific regulations in each country are their own, many of them have similar systems. There is a core set of

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