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Issues concerning international business in developing countries - Essay Example
Author : armstrongfreder
Pages 14 (3514 words)
Whenever businesses are looking beyond their borders to establish themselves, there are a number of factors that make certain countries more lucrative than others. At no single time in history have businesses been more interested in investing outside their borders; consequently, it is essential to look for alternatives that would work for the company rather than against it…
Prior to investing in developing nation B, it is essential for one to look into the popularity of doing business in such countries. However, the general trend currently is that many developed nations are looking towards the developing ones to further their returns. Additionally, it is essential for one to consider the cost of doing business in country B. The combination of the latter two factors is actually what brings out the beauty of doing business in country B. Rarely is it possible to find that an investment idea that is both cheap and popular. However, choosing to take one's business to developing nations is likely to change all of this in one instant. (Vernon, 2001)
Research conducted earlier this year in Europe indicated that close to forty six percent of investors are choosing to take their businesses to emerging markets. What this means for the company is that there will be substantial levels of capital getting into such an economy thus reflecting on the overall returns obtained there. In 2008, it was asserted that percentage returns from emerging economies approximated to about fifteen percent. One the other hand, the level of returns from developed nations was eleven point one percent. ...