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Analysis Study Research Paper | Law | Bangladesh | Volume 13 Issue 7, July 2024 | Rating: 3.1 / 10
Foreign Direct Investment and Risks in Asia and Africa
Abstract: Foreign investors worldwide are interested in investing in developing countries in Africa and Asia. Currently, these two continents are still rich in abundant resources, both human and natural resources. This wealth is a large business and a significant opportunity for foreign investors to gain many profits. As a foreign investor, doing business in a foreign country requires awareness, consideration, and evaluation of risks unique to its environment. These necessarily involve knowledge of the politics, economics, legislation, and, of course, the social and cultural traits of the community. ?nv?stm?nt proj??ts ar? ?ss?nt?ally subj??t?d to var?ous forms of r?sk that ?an hav? ?mpa?ts on th? p?rforman?? ?xp??t?d by b?n?f???ar??s. Manag?ng th? op?rat?onal r?sk of ?nv?stm?nt and ?ap?tal proj??t ?s ?ru??al to th? ??onom?? v?ab?l?ty of many organ?zat?ons. This study ?rovid?s ?n ?x?lor?tion of th? imminent risks for?ign inv?stor f?c?s in d?v?lo?ing countri?s, ??rticul?rly in th? ?r??s of tr?d? s?cr?ts, tr?d?m?rks, co?yright, ??t?nt ?nd lic?nsing, and how tax holiday, labor and capital return policies affect investment in the countries. Not only is it risky for foreign investors, but investment activities are also risky for developing countries that are investment targets, where many foreign investors take advantage of the weaknesses of their target countries to gain greater profits. Based on this, foreign investors can first consider information related to the risks of their destination country, and countries with developing economies expect to strengthen their policies to eliminate any potential loopholes for exploitation. This research examines the risk that foreign investors encounter in doing busin?ss in s?l?ct?d und?rd?v?lo??d countri?s, ?s??ci?lly ?s r?l?t?s to Japanese investors. It ?n?lys?s th? constr?ints to ?ff?ctiv? im?l?m?nt?tion of b?st ?r?ctic?s ?nd int?rn?tion?l st?nd?rds. This thesis th?r?for? r?comm?nds th?t th? glob?l rul?s for tr?d? ?nd inv?stm?nt n??d to b? im?rov?d ?nd m?d? to work b?tt?r in su??ort of l?v?l ?l?ying fi?lds ?nd ?n o??n, rul?s-b?s?d glob?l ?conomy, ?s??ci?lly so ?s to discour?g? ?rot?ctionist tr?d? ?nd inv?stm?nt.
Keywords: Economic Globalization; Political Economy; Foreign Direct Investment FDI; Private Foreign Investment PFI; Bilateral Investment Treaties BIT; Investment Risks; Developing Countries; Less Developed Countries LDCs; Risk Management
Edition: Volume 13 Issue 7, July 2024,
Pages: 344 - 348