Benefits And Risks Of A Foreign Investment Project

Iraq’s economy was based almost exclusively on agriculture until the 1950s, but after the 1958 revolution economic development was considerable. By 1980 Iraq had the second largest economy in the Arab world, after Saudi Arabia, and the third largest in the Middle East and had developed a complex, centrally planned economy dominated by the state. (Britannica)

What impact will the prospect of deprivatization have on investment by managers of privatized firms?

In 2013, the GDP was at an all-time high, even compared to prior the invasion of 2003. Showing that despite several years of stifled growth the long-term effect of the reconstruction of Iraq is starting to look more positive. This contrasts with the previous view that the Iraqi economy has not been successfully reconstructed. This is because Iraq was not a failed state, therefore the Iraqi economy was not disastrous prior to the invasion. Meaning an improvement on GDP is a positive sign. The graph in figure 1 appears to show a similar reconstruction performed by the Hussein administration after the first Gulf War in the early 1990s. Suggesting that the US reconstruction effort has not been much better than an attempt by a corrupt regime which the US eliminated. However, the recent faltered of both the fortune of both the Iraqi economy and Iraqi people appears to correlate with the absent of the US in the country. Signifying that the heavy use of US money and corporations has led to a good short-term development but have led to a problem in long-term development. This is mainly due to a lack of expertise and skills to be able to deal with problems as noted previously. Two main examples of this are the health industry and education, health which has some of the best equipment

Any company that decides to expand internationally should consider many complexities that it might face. Because of the differences in political system, culture, surrounding environment, and many other factors, there might be great barriers for a firm to expand internationally. The CEO of Talisman Energy Inc and senior executive team have to convince the board of directors to enter Kurdistan region of Iraq. After Talisman's scandal in Sudan, taking any other step into an unstable region carries a great risk.

The United States is both the world’s largest foreign direct investor and the largest beneficiary of foreign direct investment. While there may be many positive advantages to foreign investments, such as: increased productivity and economic development simulation, there are and equal amount, if not more, disadvantages. Direct foreign investments cause less domestic investments to occur within the United States and they could possibly even lead to Modern-Day Economic Colonialism. The United States Foreign Policy is a guideline that limits and allows overseas trade within the country. It is used to as a form of security to protect the United States' well-being, to make sure that trade with other countries and organizations won't jeopardize the

At one time, that was consider true when Saddam Hussain government made it impossible for any business internal or external to flourish. For example, “According to the Economist Intelligence Unit data, Iraq’s GDP stood at roughly $38 billion in 1989, measured in constant 2003 dollars. From 1990 until Saddam accepted the terms and conditions of UN Resolution 986 in 1996 the GDP in Iraq remained at less than 30 percent of the 1989 value. In the 1996 to 2002 period, the data shows a gradual recovery as GDP increased from $10.6 billion in 1996 to $33 billion in 2000 before dropping back to $29 billion in 2001” (CIA). However, this form of economic trials were a decade ago, Iraq has grown its economy at a slow steady pace since Saddam’s rule. In fact, “in 2014 the estimated gross domestic product in Iraq was around 232 billion U.S. dollars, more than six times higher than a decade before” (Statista). This new information is not publicly known as a result too many people continue to see the Republic of Iraq as impoverish. Even though, there are still some lingering economic harsh ships in the nation such as military expense against terrorism, the nation has changed a

Thirteen years since the invasion of Iraq, the Human Development Index ranks it as one of the lowest countries on their list at 121 out of 187 countries, meaning its industrial base is weak and there is no middle class, with rampant political instability.

7. Political risk. Companies considering expanding into other countries must take political risk into consideration when developing a location strategy. Since some countries have unstable political environments, companies must be prepared for upheaval and turmoil if they plan long-term operations in such countries.

While the Iran-Iraq War during the 1980's may have permanently altered the course of progress in Iran and Iraq, the war also altered the resulting permanent involvement of the rest of the world in the middle-east. The rich and complicated history in Iraq has established numerous cultural and ethnic traditions that all play a part in where the country is today. The Iran-Iraq War brought into focus some of those traditions and how they conflicted, while also bringing Iraq and its economic situation into the spotlight. Being on top of some of the most mineral rich soil in the world makes Iraq a major contributor to the world's economy through petroleum and crude oil exports. This, among other reasons, ties nations

The economy in Iraq largely relies on oil mining. Oil in the country accounts for approximately 90 percent of government revenue and an estimated 80 percent of its foreign exchange earnings. The Iraqi economy is mainly run by its government. The country’s security environment is improving and foreign investors play a role in spurring economic activities in the construction retail and energy sectors. This leaves a niche in their market and this is where we come in with our computer and auto parts investments. The county’s long term fiscal health, broad economic developments and improvements sustained in the overall living standards of the Iraqi people depend on its central government’s passing of major reform policies. (The World Factbook:

China, over the last 30 years or so has achieved extraordinary economic growth, leading to gradual market liberation. Despite this China remains a one nation state with HR practices steeped in Confucianism, however The Chinese government is committed to supporting outward investment for companies looking to expand overseas. (IBM, 2006). There are many influences to consider when deciding which country to invest in, this essay will consider the cultural, economic, political, and industrial relation factors a Chinese steel factory must consider in deciding whether to open a new production facility in Britain or Sweden. After considering these issues, based on the evidence the essay will conclude with a recommendation on which country is

Iraq is an agricultural country and has a fertile land with raw and pure materials; specify Minerals and oil to use it in a variety of different industries. We almost have everything that it takes, from natural recourses to money to build industries, so why would not we establish more factories? For example, Sharazwr plain, which is located at the northeast of Iraq, can greatly produce sugar beet, which goes into producing sugar. Also, it has lots of cotton, which could be used for making clothes. Moreover, there is so much alabaster in Penjwen, which is located at the northeastern side of Iraq. We can make use of those stones for buildings. With opening more factories job opportunities and individual

Spain 's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II, but suffered through a devastating Civil War (1936-39). In the second half of the 20th century, it has played a catch-up role in the western

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts

The literature on Foreign Direct Investment (FDI) has documented various spillover effects on host countries. Following the same line of literature, this chapter takes the analysis further analysing spatial spillover in Indian manufacturing firms for the period 2001-2015. The analysis is based on two different types of weight matrices, one which is geographical based on firm’s location district and the other is based on ‘economic distance’ created by industry type of the firms. The results from Spatial Autoregressive Model and Spatial Durbin Model suggest the existence of positive main effects of foreign direct investment and on the job training but negative interaction effects with weight matrices. The possible cause of the negative