Direct Investment

• What is direct investment?

  Establishing operations in a foreign country
• What are the advantages of direct investment?

  • Full control of operations and decision-making
  • Avoids tariffs
  • Long-term brand and market presence
• What are the disadvantages of direct investment?

  • High capital costs and financial risk
  • Requires deep understanding of local laws, culture and labour markets
  • Time-consuming to set up operations
• When is direct investment most suitable?

  • For long-term growth in strategic markets
  • When full control, local production, and brand reputation are important
  • Larger businesses with sufficient capital
• When is direct investment not suitable?

  • For small businesses with limited capital
  • In politically unstable regions