As the foreign financier one can get assess incentives in tax that will be helpful in the chose field of business (Kinda, 2010). Disadvantage of FDI in Developing Nation Negative effect on investment of country The guidelines representing foreign exchange rates plus direct investment could negatively affect financial spending of a nation. Investment might be not allowed in a number of foreign markets, which implies that it is difficult to lead an enticing opportunity (Kinda, 2010). The costs of things are quite high on exports good due to FDI. As a result, it is very important to arrange enough money in order to set up own procedure.
DRAWBACKS OF INTERNATIONAL TRADING Drawbacks of international trade extent from negative social effects to opposing environmental consequences. Occasionally the well-being of people is overlooked or risked for the sake of return on investment. Other issues related to the exchange of services and goods between countries include a potential unsafe need of foreign countries and local occupation losses. There are social hindrances of international trade. While experience with other cultures can be an advantage, it can also be damaging.
Different countries will have different cultural perspectives, rituals and product usage. M&S may struggle with the understanding on how to operate a business in the emerging market, as M&S which origin from UK may not know the cultures of other countries, such as China. M&S will first need to understand the local cultural background of the countries, in order to sell the goods and services effectively (tutor2u, 2012). Thus, cultural differences will be faced when doing business in emerging markets. Furthermore, the disadvantage of emerging markets is the economic risk.
These purposes might be beneficial in the short- run because it will encourage economic growth. Without trade barriers, workers from other countries can easily enter the country and resulting in the increase of unemployment. For example before ASEAN Economic Community (AEC) was placed, ASEAN member labor forces cannot enter Indonesia territory easily. But with AEC that is going to be established, Indonesia workers might be threatened because foreigner might have a higher competence than Indonesia own workers and this may lead Indonesia labor to lose their job and thus, increasing unemployment. But in a long-run, when trade barriers continue, trade barriers will hurt national economy.
By hiring foreigners it would bring different information that has not been shared before also exposure to different culture so basically each employee would introduce their values and norms to their colleagues and create an environment of mixed culture within the organization and exposure to different materials also ways of doing business. There are different advantages of hiring a foreign employee sometimes it is cheaper to hire them but of course depending on the job position and also foreign labor are more likely prepared to do jobs that local employees refuse to do it. On the other hand, there are disadvantages as I mentioned that foreign workers tend to be cheaper but cost to bring the employees to the country is expensive. For example, paying a lot to keep them in the country including fees of pay housing. Additionally, some foreign workers might need a lot of trainings for them to have a good performance and meeting the organizational goals.
President Rafael Correa quadrupled the budget from US$40 million to the US$150 million per year which it currently is in 2017. Across the country over 30 touristic projects are in development, representing around US$1.6 billion in investments since 2013 from local and foreign funding. The public policy towards tourism is based on five core values: Safety, Quality, Destinations and Products, Connectivity and Promotion. Domestic financing has been the main aid in positive development but a substantial amount of foreign investment has contributed. The successful “Invest Ecuador Tourism” campaign helped immensely in attracting investment from abroad.
Moreover, the firms can also benefit from the competition against groups of local firms of a relatively homogeneous kind when entering foreign markets. However, with the increasing cultural distance and wider range of host countries, the abovementioned advantages will be weakened or neutralized. At the same time there will be higher levels of complexity and uncertainty for transaction cost, managerial decision-making regarding MNE strategies and organizational choices (Shane et al., 1995), the management of an MNE's portfolio of foreign subsidiaries from a culturally diverse country base (Tihanyi et al., 2005), and human resource management (Schuler, Dowling, & Cieri, 1993). Generally, such increased operational difficulties
2.3.2 Sales Promotion and its Relationship with Consumer Brand Preference It has been acknowledged that consumer and trade promotions can be a very effective tool for generating short-term increases in sales, and many brand managers would rather use a promotion to produce immediate sales than invest in advertising to build the brand’s image over time (Belch & Belch, 2003). They, however, caution that overuse of sales promotion can be detrimental to a brand in several ways. The first is that a brand that is constantly promoted may lose perceived value. This is in line with Teunter (2002) and Jha-Dang’s (2004) assertion that the presence of a promotion will lead consumers to attribute lower quality to the brand owing to the fact that it is on
Increased security threats: While the Free Trade Agreement may allow better coordination between security arms of member governments, the relaxation on borders and free movement of people may allow the entrance of individuals from terrorist organization’s as well as criminals to penetrate easily and expand their activity beyond the borders of one country into another. iii. Increase in structural unemployment may arise in industries in some member countries that are in, “direct competition with other lower-cost trading partners due to a loss of comparative