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Global Management 575
You are the CEO of a large company seeking to invest in either Central or South America and have directed your staff to prepare a report and recommendations. Two of the countries you are assigned are Brazil and Venezuela, and it is your task to make the recommendation between these two countries. Assess the various risks in each of these countries. Which country would you recommend and why? Explain your answer with a well-constructed and cogent response.
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Discussion Week 1 -
The decision to invest in a foreign country should take into consideration various factors, but the most importantconsiderations? are the political stability and the economic growth. Under these two main factors, there are many sub-factors,according to Globalization 101 Export Enterprises (2017). End sentence here; otherwise it is too long. Items to consider include (1) the rules and regulations, and this pertaining to the level of entry and operations of a foreign investor in a specific country - run on sentence; (2) the standards of treatment of foreign affiliates, compared to local or “nationals” investors of the host country; (3) the functioning and efficiency of local markets, taking (this takes into account the mechanism of regulation)' (4) the trade and privatization policy (can the government decide to publicize a private company...); (5) the business facilitation measures, such as investment promotion, incentives, improvements in amenities, and other measures to reduce the cost of doing business. Are these direct quotes? Any more than 3 words must be in quotation marks. It would be easier to follow if you wrote sentences for each item. You want your reader to be able to follow your train of thought without looking back. For example, some countries set up special export processing zones, which may be free of customs or duties, or offer special tax breaks for new investors for a certain period of time; And, here you have an example within the middle of your listing... (6) the restrictions, if any, on bringing home (“repatriating” (Rapoza, K. (2017)) earnings or profits in the form of dividends, royalties, interest or other payments. Way too long of a sentence.
On the other hand, Hill (2015) suggested to looking at the overall economy in the host country, such as the national economic growth rates, and the exchange rate stability, because after all, investors need to bring their profit share back home. In the macro-economy level, it is also important to look at the foreign exchange reserves held by the central bank, which and this is an indication of the health of the foreign banking system that also leads to the liquidity of the stock and bond market that also justify the interest rates. You sentence structure is too wordy. Get to the point. Do not try to make extra long sentences. Make your point without frustration your audience. Lastly, portfolio investors also look at the economic policy environment as well, you already said "also" andespecially at factors, such as the easiness of repatriating dividends and capital, the taxes on capital gains, the regulation of the stock and bond markets, the quality of domestic accounting, and disclosure systems and the degree of protection of investor's rights. too many "ands;" see comma rules on series
But, the political stability is the key since, without peace, no economic activity can be easily conducted. Taking into consideration all these factors, each country hasve some advantages economy what are you trying to say? but also some inconvenient but overall, the Brazilian economy is more viable at the present moment compared to Venezuelan economy since the most important factor, the political stability is very vulnerable in Venezuela. Poor sentence structure. Looking at both Gross Domestic Product (GDP) Venezuela is in bad shape with the growth rate of -1.2% while Brazil growth rate is 2.1% (Rapoza, 2017). This is the first time you are mentioning actual factors that should be considered, however, the sentence cannot be understood. Find facts and do not just talk about theory. This was a direct question; get to the point and explain why. As a CEO, my choice therefore become evident: Brazil.
References:
Hill, C. W. L. (2015). International business: Competing in the global marketplace (10th ed.). New York, NY: McGraw-Hill. ISBN: 978-0-07-811277-5
Globalization 101. (2017). Factors influencing foreign investment decisions. Export Entreprises SA, All Rights Reserved. Last Updates: July 2017. Retrieved on 8/24/17 from: http://www.globalization101.org/factors-influencing-foreign-investment-decisions/
Rapoza, K. (2017, June 6). World Bank: Brazil Is The Worst Economy In Latin America. Retrieved on 8/24/17 from https://www.forbes.com/sites/kenrapoza/2017/06/06/world-bank-brazil-is-the-worst-economy-in-latin-america/#29fcd09c29f0
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