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What are the factors that prompt international business concerns to invest in foreign countries? Discuss giving suitable examples.

Business Development
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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/13
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padmakumar pathiyil
by padmakumar pathiyil , Marketing Consultant , Management Consultancy

Basic factors to invest in a foreign country are as follows:

1. Profit Motive eg: companies invest in China because the labour cost is cheap.

2. Government policies eg: companies do not want to invest in india because of long government procedure 

3. Monopoly power

4. Domestic Market Constraints

5. Spin off benefits

8. Competition

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