Land and Sea Incorporated would like your opinion about various countries as potential markets and investment sites. What general information can you share with them about assessing the overall attractiveness of a potential country as a market

Land and Sea Incorporated

Country Attractiveness:

The following are general information that can be used to assess the overall attractiveness of a potential country as a market and investment destination:

1. Economic Factors: Some consideration should be paid to the foreign exchange practices, the economic competitiveness, and the fiscal policies, including taxation of the destination country.

2. Political/Legal Factors: An investment destination needs a stable political system with smooth regime-transitions.  Investors should be able to secure their basic property and intellectual property rights.

3. Socio-Demographic Factors: The market potentials (market growth, entry and exit, and profit growth) and the ease of doing business in an environment are also important considerations.

4. Physical Infrastructure: It is very important to understand how the destination country is developing its physical infrastructure.  Are power and energy resources readily available?  Does the country possess good transportation networks that will enable the free movement of persons and goods?  The security of life and property is an important factor that should never be overlooked when considering the physical infrastructure.

Explanation:

Country attractiveness is the measure of a country's readiness to welcome both domestic and international investors and provide the enabling environment for business activities.  However, there should be a thorough evaluation of potential investments in a foreign country to determine the country’s suitability is in terms of its external business environments.  The critical decision to invest should not be left to sentiments and political rhetorics.  Some governments are experts in advertising the attractiveness of their countries.  Some of them, with their investment campaigns, are not bankable.