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Foreign Direct Investments

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Running head: FOREIGN DIRECT INVESTMENT 1

Foreign Direct Investments

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FOREIGN DIRECT INVESTMENT 2

Foreign direct investment (FDI) is an investment by either a person or a company from a

foreign country in another nation where it can take the form of starting business operations or

acquiring business assets. This paper, therefore, seeks to explore factor for consideration before

investing in Lebanon.

For a company or an individual to undertake investment in a foreign nation, one has to

consider several factors which can affect the investment. In Lebanon, for example, it is

imperative to consider the cost of living, the culture of the people, industrial relations, work

ethics and the government restrictions. Lebanon is a sovereign state that is found in western

Asia, bordering Syria, Israel, and Cyprus. To invest in Lebanon, an organization has to consider

the cost of living in the country. Lebanon is a country that has a favorable environment when it

comes to foreign investments. The cost of living in most Arabic nations is relatively low, but that

of Lebanon is a bit high due to the war in the neighboring nations such as Palestine, Israel, and

Syria. However, it still favors a foreign company seeking to invest in Lebanon, but the company

needs to do more research on the type of product to produce in Lebanon. Cost of living is always

an essential factor to consider because it is from this information that the organization evaluates

and forecasts its success in that foreign nation (Atala, Dagher & Chebib, 2016).For example, in a

nation where the cost of living is high, it will mean that the products of the organization are

likely to have a limited market due to the effects of high cost of living where individuals will

have less capital circulation in the market. On the contrary, a low cost of living will mean that

people are not facing hard times when it comes to money and hence they can afford to live a

good life without having to spend a lot. This in return will boost their purchasing power hence a

good market for the products of a foreign company.

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Running head: FOREIGN DIRECT INVESTMENT Foreign Direct Investments Institution: Date: 1 FOREIGN DIRECT INVESTMENT 2 Foreign direct investment (FDI) is an investment by either a person or a company from a foreign country in another nation where it can take the form of starting business operations or acquiring business assets. This paper, therefore, seeks to explore factor for consideration before investing in Lebanon. For a company or an individual to undertake investment in a foreign nation, one has to consider several factors which can affect the investment. In Lebanon, for example, it is imperative to consider the cost of living, the culture of the people, industrial relations, work ethics and the government restrictions. Lebanon is a sovereign state that is found in western Asia, bordering Syria, Israel, and Cyprus. To invest in Lebanon, an organization has to consider the cost of living in the country. Lebanon is a country that has a favorable environment when it comes to foreign investments. The cost of living in most Arabic nations is relatively low, but that of Lebanon is a bit high due to the war in the neighboring nations such as Palestine, Israel, and Syria. However, it still favors a foreign company seeking to invest in Lebanon, but the company needs to do more research on the type of product to produce in Lebanon. Cost of living is always an essential factor to consider because it is from this information that the organization evaluates and forecasts its suc ...
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