A Successful Foreign Direct Investment

2844 Words Apr 22nd, 2015 12 Pages
The growth of globalization has created a massive impact in businesses all over the world. Companies are competing against one another in order to find the most profitable way to conduct business. As the global competitions rise, companies must now consider new dimensions of conducting business to survive in the highly competitive world. In order to create a successful Foreign Direct Investment, companies must look into numerous factors in the target country. Some of these factors include cultural differences, political stability, exchange rate stability, tax policies, state of infrastructure, and corruption level.
Indonesia is a developing nation that has reached milestones in its progress starting with its move into democracy into the efforts of stabilizing its economic fluctuations. According to WorldBank.org, the 2014 inflation rate was estimated to be 6.4%. Also, the GNI per capita has been steadily increasing since 2000, which was $2200 into a surprising $3524 in 2014. With a population of 249.9 million people in 2013, a Gross Domestic Product of $863.3 billion and a growth rate of 5.8% in 2013 (WorldBank.org), along with the explosive growth middle class and their consumptive nature, Indonesia is a prime target for foreign direct investments from all over the globe. Also, as seen in DoingBuisness.org, the ease of starting a business has risen in rank since last year. With a growing access to electricity in more areas (DoingBusiness.org) and the government’s lenient…

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