International Business (Foreign Direct Investment)

International Business: Foreign Direct Investment University: Name: Course: Tutor: Date: International Business: Foreign Direct Investment Foreign direct investment (FDI) offers a global business a strategic opportunity to grow and expand. Exportation and FDI activities offer an organization with cheaper facilities of production, new markets and marketing channels, accessibility to modern technologies, products, processes, capital, management skills, and thus act as a strong basis for general development (Lukac, 2008). However, before an organization decides to start engaging in export business or FDI, there are several factors which the management has to consider. First, the company must assess its internal resources to find out if the system capabilities can withstand the setup period and consistent management of the foreign subsidiary. This should be possible without affecting the normal operations of the firm. From a competitive point of view, the company should analyze if its competitors are also entering foreign markets and how they are carrying out this process. Third, the company must be k...