Foreign Direct Investment & Regulatory Environment

University of PhoenixMGT 448 Global Business StrategiesMarch 16th, 200 This idea will discriminate the irrelevant direct enthronization environment and regulations of Aruba, Haiti, and Domini female genital organ Republic. The institution is considering opening a new factory in the Caribbean, and focus is in the process of evaluating the specific country locations for this direct investment. This paper will define foreign direct investment and hold forth the advantages and disadvantages. The paper will also relate the stage of foreign direct investment to business opportunities.

One variable normally used to measure where and how fast internationalization is taking turn out is the increase in total foreign direct investment (FDI). According to Hill, 2009 ?Foreign direct investment (FDI) occurs when a warm invests directly in facilities to produce or market a product in a foreign country? (p. 242). FDI can provide an organization with new markets, less expensive facilities, and access code to new products, financing, and skills. There are advantages to FDI into countries such as parentage growth in a depressed country, financial obtain to the country?s economy, education of the citizens, and inexpensive labor cost for the organization moving into a specific country thusly leading to a higher profit. The disadvantages of FDI are too often growth in a short time bound leading to overcrowding and pollution of a city, increased crime, and a redness of culture.

Political, Legal, and Regulatory Environment for ArubaThe island of Aruba is located in the middle of the southerly Caribbean well-nigh 15 miles off the coast of Venezuela. The island is 19.6 miles long and 6 miles across at its widest point, with a total area of approximately 70 square miles. The political environment in which Aruba operates is parliamentary Democracy. This is a political system in which the parliament selects the prime minister and eight member cabinet. This type...

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