Foreign Direct Investment - Management Issues and Foreign Direct Investment - Purchase or build decision

3 important questions on Foreign Direct Investment - Management Issues and Foreign Direct Investment - Purchase or build decision

What is a greenfield investment?

To build a subsidiary abroad from the ground up

What factors reduce the appeal of purchasing existing facilities:

- Obsolete equipment
- Poor relations with workers
- Unsuitable location

What factors could be surprises of investing abroad:

- Human resources policies
- Mandated benefits
- Labor costs
- Labor unions
- Reliable information
- Personal and political contacts

The question on the page originate from the summary of the following study material:

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