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Foreign Direct Investment : (Characteristic (Initial internationalization…
Foreign Direct Investment :
Advantages
Increase revenue
cheaper
availability of product
currency
Infusion of foreign capital
learn foreign investment opportunities
Disadvantages
Other country Economy
Unstable
unpredictable
may cost more
other country politic
underdeveloped legal system
may caused
extra cost unexpected
reduce revenue
uncontrolled outflow money
Characteristic
Initial internationalization may accidental
Foreign expansion is often unplanned or the result of chance event such as meeting with a foreign dstributor
Risk and return must be balanced
Potential internationalization against initial cost in term of money, time and other company resources.
Push and pull serve as initial trigger
Combination of triggers inside, and outside the firm responsible for initial expansion
Ongoing learning experience
Provide an experience to learn and opportunities to do business include involve many national setting