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Economic risks and foreign investments
There are various cases where American based manufacturers opt to expand their businesses through acquisition of the competitor brands and entire investment and turn it around to use it for their own good. In this instance is the T-shirt manufacturing company based in the USDA opting to buy out the competition based in Bangladesh so that it can increase their volume of sales as well as expand the brand name. For this company to successfully expand the brand name in the Bangladesh economy, there is need to understand both the economic as well as the economic aspects that shape business operations within the new country.
Politically speaking, when a foreign company or corporate organization is taking over another company in another country, the political risks involved are numerous, firstly the laws and by-laws that regulate trade in different countries substantially differ hence the buying company needs to learn and internalize these laws in order to trade in a familiar territory, otherwise they may end up with a chain of litigations and fines. There is also the stereotype of lack of belonging to the foreign owned companies since the locals will be more loyal to their brands than foreign brands in most...…buy out competition in foreign nations must come into grasp with (Almotairi M., Alam A. & Gaadar K., 2013).
In order to successfully venture into foreign markets, and particularly those in the third world and developing nations, the organization must first have a fact finding team to carry out thorough due diligence before all factors are considered and a decision to invest in the market is made. The company must also be ready to engaged the unconventional means to tackle some unconventional issues like the counterfeit and the black-market. The company has to have a permanent team that looks into the market intelligence on a continuous basis so…
References
Almotairi M., Alam A. & Gaadar K., (2013). A Case Study “Challenges and Threats for International Business” http://www.usa-journals.com/wp-content/uploads/2013/03/Almotairi_Vol14.pdf
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