Invest In A Country Essay

➢ Taxation – firms functioning when dealing with a different country the subject to that country’s laws and regulations.

An Investment is where there’s 2 ways you can either save your money up till you have the right amount or you can either invest over a long time. Also you could buy something with increasing the value of your profit.

Investing- Expend of money with the expectation of gaining a profit or material in result to putting it into something.

An investment can be defined in several ways. First, we’ll have a look at the financial implications of the

Political risk is the possibility of negative events such as expropriation of assets, changes in tax policy, expropriation for minimal compensation below market value, restrictions on the exchange of foreign currency, governmental controls in the foreign country, local governments requiring equity positions, or other changes in the business climate of a country. International business can lead to these types of political risks and studying the market can help to lessen the damage that can be done.

What does the term investment mean to the everyday individual? Investment by definition, generally, refers to putting money to some type of use through either a purchase, or an expenditure that in turn offers a potential for a return that is profitable. For example, an individual sells a business and realizes a net gain of two hundred thousand dollars; this individual has a plethora of choices concerning this gain in funds. First, he can place the monies in a traditional bank account, usually at a low rate of interest, which is figuratively speaking referred to as sitting on the money, or the individual could utilize the funds for the basis of investment in the stock market with a potential to earn a greater percentage interest rate over a period of time. Of course, an investment and the creation of a stock portfolio offer the potential for the greater return value. However, this course of action requires careful considerations because as Maranjian (2013) reports that in financial concerns there always exist a definite correlation between a return and a risk with a risk representing the potential of money loss, and return the profit driven aspect of an investment.

Effective and efficient use of tax incentives for small businesses requires careful tax designed. Many times government use income tax exemptions to attract investment or persuade for joint ventures to attract investments. Good infrastructure, long term effective policies, economic stability etc. are important for bringing investment. There is a need of have correct taxation policy to really have a great impact on domestic small business.

When I picture the ideal society, it is everything that my homeland, Sweden, is not. Everything that I hate about Sweden, everything that makes me dislike this country, does not exist there at all. In the land of my dreams, the weather is warm and the sun is shining at all times. On the days where the sun shines too bright, you can go for a swim in the turquoise ocean to cool off. That is mainly what I would like to do after long days of work, just go to the ocean, lie on the beach with white, fine sand and coconut trees surrounding the premises. There are also many activities that keeps the visitors entertained, which easily happens when you go to the beach everyday. There are bouncy castles in the ocean near the beach, you can go surfing, snorkelling to check out the magnificent sea life and you can also rent a luxurious boat for as long as you want for a vacation on the sea. That really makes it easy to keep life constantly interesting. One activity that probably is my favorite one, is to discover all

Most financial companies have now begun to eye China, India and Brazil, which hold the finance for 20 percent of the global economy and in future there will be 70 percent of total global GDP growth from these countries. There are compacts between these countries and China and Indian have opened markets globally owing to the international and US pressure after globalization. The need to invest in these countries stem from the fact that Indian market is very lucrative especially with the Forex and commodities. Likewise China has also opened up its financial markets and the investment flow can be two way in future.

The business environment is regulated by opaque procedures, middlemen, bureaucrats, businessmen and politicians. Difficulty is something that encourages free enterprise for disposal.

In today 's developing economies the competition to attract foreign investment and expanding trade relations has become the foremost economic strategy to satisfy the quest of the society for rapid economic growth. The failure of inward-looking economic policies to change the trajectory of decades long stagnated economies forced countries to adopt outward-looking trade policies and market economy. As a result, attracting foreign investment and promoting exports emerge to be the core economic and trade strategies. Foreign investment is believed to provide multidimensional benefits to the host economy both directly and indirectly. The main direct benefit is the capital inflow that fills the finance gap between the required investment and

Political environment is significant to do business in other countries. There are different factors of political environment. These factors can influence the government decision making and other activities. For foreign investors every country set some rules and regulations. Investor need to maintain these rules and regulation to do business on certain country. Political factors can influence the government to change these regulations. So investors need to know the regulations and get the proper knowledge about political environment.

A lot of developing countries are trying to attract investors in their businesses. And on the other hand, there are plenty of investors who are searching for the new perspectives and attractive offers. Generally speaking, this process is beneficial for both parties.

There are two main types of investments which are real investment and financial investment. Real investment in the literal meaning is real assets investment; it is an enterprise in cash in kind such as investment in intangible assets invested in other companies. It has many characteristics like close link with the production and operation, and the payback period is long and slow realization of investment and poor mobility. The examples are land and machinery (kogan, 2004). Financial investment is an enterprise invested in financial assets or financial instrument or investment activities of economic behaviour. The targets of financial investment include bond, fund, gold, stocks, forex and futures (Chen, 1991). And compare with these two investment types, the differences, firstly, they have different investors, real investment’s is a direct investor but financial investment’s is indirect. Secondly, they have the different investment objects, object of real investment is variety of real assets, and object of financial investment is a variety of financial assets. Lastly, they have the different purposes, real investors to invest in physical assets, and financial investors to invest in financial assets (Tornell, 1990).

Taxation is identified as a very important tool for national economic development and growth in most societies. Taxes provide sustainable revenue for government to carry out its activities. The government’s activities help in creating and wealth and employment opportunities in the society, creating an avenue for citizens to earn income on which taxes are levied. Through this continuous process the circle of growth and development in the country is sustained.