What are the benefits, cost and risks associated doing business in a country?

Question

related to the economic environment

Answer 1

What kind do you mean?

Answer 2

cost of labor (what you pay workers)-often a companys biggest expense-countries with lower standards of living generally offer chap labor. (benefit)

lower corporate taxes-especially in countries that are trying to attract foreign business-they will offer big incentives via low taxes. companys located in those countries save a lot in taxes. (benefit)

transportation systems accessibility-you have to be able to ship the goods to other markets-access to reliable, efficient and reasonably priced distribution network is critical.

access to raw materials-ideally, the goods will be able to be manufactured using mterials available in that country.

US Corporations were built on and operate operate within the capitalist model. in non-capitalist countries they will not always be afforded the same rights and protection offered in the US.

emerging market economies and third world nations are susceptible to political, social and economic unrest-this is a risk. the company could be a target for dissedents or a change in politcal powers could create a hostile environment for foreign businesses.