Monday, March 16, 2009

Chapter 4, 4.4

Direct investment is considered risky because through active investment in/ownership of a foreign company, the direct investors have both the greatest potential reward if the company succeeds and the greatest potential risk if the company does not turn profit. The US firm owning the foreign firm may face significant challenges in understanding how to translate its policies and procedures to create a successful business environment in the foreign culture.

No comments:

Post a Comment