Investment Regulations

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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.…show more content…
There are four basic steps to the screening process. The first step involves determining the basic appeal. This is done through determining the basic demand for the product and determining the availability of resources to support the business. This would include resources such as labor and raw materials. The next step in the process is to analyze the national business environment. Managers must understand the differences in culture, laws, politics, and economies between countries. The third step in in the process is measuring the market or site potential. The types of products to be sold and how they are sold are influenced by the different levels of economic development. The fourth and final step in the process is the actual selection of the site or market. Visits are made to the remaining sites that have made it through the process so far in order to more closely view the culture or workforce. Competitors are also analyzed in this process. Competition has a direct impact on pricing. It needs to be determined how many competitors are in the market, their market share, segment appeal, their focus on quality or price, their level of control over distribution channels, level of customer loyalty, the potential of new competitors entering the market, and how much control competitors have on production inputs such as labor, raw materials, and capital (Analyzing
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