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Advatdages and Disadvantages of Foreign Direct Investment for multti national companies?


Advatdages and Disadvantages of Foreign Direct Investment

an example of an advantage is GM. Buick sales were not solid in the domestic US, but were very big in Russia and China. If GM did not have any global business they would be in big trouble. That goes for many global companies in the last few years.
Disadvantage is Soveregin risk...doing business in another country can have risks with the other contries government.

There are hundreds of advantages and disadvantages....but more advantages

Currency exposure comes to mind first. Companies can make or lose money from currency flux. Most companies that have foriegn divisions will hedge exposure.

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