[ 21 January 2013 ]
Short Answers: Management Consultant
Here Comes the Competition
Is Europe likely to be a good area for direct investment during the years ahead? In short, no! According to estimates from the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment worldwide dropped 15% to $1.7 trillion in 2008 from a record high of $1.9 trillion in 2007 (Boston, 2009). In contrast foreign direct investments in Europe plunged 39% to $559 billion in the same time period. Typically, companies are finding it more difficult to invest due to falling corporate profits, reduced availability and higher costs. However, in Europe, the economic outlook looks gloomy. According to Michael Gestrin, Senior Economist and Manager of the Global Forum on International Investment, “the figures suggest that the economic crisis, in terms of inflowing investment, is hitting Europe and other developed economies harder than the developing countries” [ (Boston, 2009) ]. Why is so much foreign money being invested in U.S. manufacturing?
The major factors to consider when investing in a specific market depend on market size, market growth and consumption capacity, and typically country risk. Works Cited
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