Foreign Investment Regulations

Abstract – Foreign Investment Regulations

In the current global economy, foreign investment has become a key aspect for established companies. Liberalization of trade has offered a host of opportunities that companies ought to exploit to make profit. Nonetheless, foreign investment is dogged by regulations that must be taken into account in international business management. This papers looks at foreign investment regulations and the screening process that managers have to take before deciding to venture in foreign markets. Foreign Investment Regulations.

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It may involve an analysis of countries macro-economic factors such as exchange rates, currency stability, level of domestic consumption, and economic development. This is followed by an in-depth screening where detailed information on the selected market can be taken in order to arrive at an accurate decision. In the final selection, manages will decide on strategic goals and look for a nation that can meet them (Punnett, 2010). To seal the decision making, managers will rely on direct experience. This may involve traveling to the nation to gain first hand cultural and business information. Foreign Investment Regulations.


International business management is a delicate process. A manager will be forced to contend with a host of regulations and competition from other business. Adjusting to these regulations may be tricky but necessary for the success of the business. Some regulation will be too costly for a business s to operate under. In this light, managers should screen potential markets before deciding to invest in them. Foreign Investment Regulations.

Reference list

Dong, J. (2005). China business law and regulations. New York: Jawin Technologies Inc.

Punnett, B. (2010). Experiencing international business and management: Exercises, projects, and cases. New York: M.E. Sharpe.

Sornarajah, M. (eds). (2010). the international law on foreign investment. Cambridge: Cambridge University Press. Foreign Investment Regulations.