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**Topic: Foreign Direct Investment** **Professor's Guidance for this week's LE:** Investing in the international market is a huge risk for any organization (Peng, 2009). It is key that the company gather historical data on the host country’s currency value fluctuation and import/export timelines. Th…
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**Topic: Foreign Direct Investment**
**Professor's Guidance for this week's LE:**
Investing in the international market is a huge risk for any organization (Peng, 2009). It is key that the company gather historical data on the host country’s currency value fluctuation and import/export timelines. This is crucial. The deal you discuss today may not be executed in time to reap the full potential of the opportunity. You could be (Peng, 2009) negotiating a deal that may cost 15 percent more in a few months when the transaction is finalized. Worse yet, you may offer a promotion that costs you significantly more a week into the offering (Peng, 2009). Lock in currency rates and delivery dates in advance whenever possible. The less speculation, the better.
Peng, M. (2009). Global business. Boston: Cengage Learning.
**Prompt**
For a smaller country that seeks to improve its overall economy and economic standard of living for its people, would you recommend that it accept more foreign investment in the country such as foreign organizations setting up operations in the country, or would you recommend that the smaller country simply accept aid from such entities as the United Nations and the World Bank and avoid foreign investment? The country cannot do both, so choose one or the other and explain why you believe it is the best way to stimulate more growth and improve the standard of living for the smaller country
**Foreign Direct Investment**
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