Chapter 8, Problem 1CDQ

Summary Introduction

Case summary:

Country N was held back by poor government, political instability, and corruption. This was changed in the year 2000s. Country N became a stable government. The reforms of Country N are market orientation, removal subsidizers, privatization, and lower labor trade barriers. Steps were taken to set off all its drawbacks. These reforms made positive impacts.

FDI (Foreign direct investment) become the one of the major engines for the country’s growth. The foreign retailers also invest major parts in distribution infrastructure like warehouse and storage facilities. Most of the investments were at Country N‘s cold storage. The projected population of Country N by the year 2020 will be more and denoted as the largest population in the world. This shows that Country N will have more consumers and more opportunities for the investors.

Characters in the case:

• Country N

To discuss: The factors held back the flow of foreign direct investment (FDI) into Country N for the most of the history of the country as an independent nation.

Introduction:

Foreign direct investment refers to the investment of a firm in one country and operating a business in another country.