The latest hot spot for companies looking to expand to a foreign market through foreign direct investment (FDI) is the Philippines. Long an impoverished country, with new political leadership, the Philippines’s economy is turning around and attracting the interest of multinational corporations that seek to maximize revenue and gain market share through FDI. But is the Philippines right for your firm’s FDI? Just because it’s a hot spot doesn’t mean it’s the right spot for FDI for every firm.
Determining which FDI opportunity is the best for your firm requires gathering background information through research of data sources and indices. Knowledge of the types of FDI as well as motives, benefits, and barriers is also critical before researching specific countries that can offer positive FDI opportunities for your firm.
As a manager, it is crucial for you to carefully consider among several investment-related reasons for FDI that stem from supply, demand, politics, and other factors. Managers need to meticulously consider each factor before making an FDI decision because any wrong assumption or assessment could be very costly to a firm’s finances or reputation.
Investors typically choose a few criteria as important factors when deciding on an FDI location. It is also important for you to understand the criteria and know how to do research and recommend which countries would be suitable to consider for an expansion plan based on country-level and firm-level FDI factors, various indicators, and readings.
Is the latest FDI hot spot right for your firm? The Accenture Academy course Analyzing Foreign Direct Investment (FDI) identifies factors used to determine country-level and firm-level criteria, as well as data sources and indices to research which countries are right for your company’s FDI. You will also follow a fictitious company as its head of international business works through the steps to prepare a list of recommended FDI locations to present to the company’s board of directors for a final FDI decision.