Foreign Direct Investment

Tips Before Making Foreign Direct Investment

There are lots of ways we can make our money grow, and that is, of course, by investment. There are a lot of investment types, there are venture capitalists, portfolio investments, and there is another one called Foreign Direct Investment. Foreign Direct Investment is a type of investment that gives the investor a higher level of control, that control even trascends how the company operates.

In Indonesia, there are a lot of successful Foreign Direct Investment examples, most of them come from Japan, they are Toyota Astra Motor Indonesia, which is a joint venture between PT. Astra International Tbk and Toyota Motor Corporation, some of the products made by the company is exported to other countries in South East Asia, some of those products are Fortuner and Agya. Another prime example is Astra Honda Motor which is a joint venture between PT Federal Motor, a subsidiary pf PT. Astra Internasional Tbk, with Honda Motor Co., which end up being named PT Astra Honda Motor, the company is one of the biggest motorcycle producer in Indonesia.

The name Astra doesnt end in these example, another prime example is PT Toyota Astra Motor, PT Astra Daihatsu Motor, and PT Isuzu Astra Motor Indonesia, those are companies which are produced by joint ventures between PT Astra International Tbk with Toyota Motor Corporation, Daihatsu Motor Co., Ltd., and Isuzu Motors Ltd., respectively. One of the companies is chosen by many gamblers of the agen sbobet

It was seen that most of the automotive company are making joint ventures with PT Astra International Tbk, and all of them are successful in their work. Indonesia is a large area for automotive consumers, not only that, the factories and workers are also abundant, making Indonesia a perfect country to invest in automotive production. This also plays an important role in macroeconomic level. This shows that the domestic companies in Japan can expand their operation to foreign market. Some of the Japanese automotive companies are also investing in India, making a diversification on their Foreign Direct Investment. Here are some of the tips for companies that are interested in investing to foreign countries:

Be wary of regulations, some countries limits how much control can a investing company have to their domestic companies. Some of the limits they di was structural complexity that makes the investing company face a huge hurdle in order to establish investment to another firm in another country.

Be wary of the risks, what this means is that the country tries to change private assets (which is, your asset in this case) to their national assets. This will ultimately drove you out of any investment you made in that particular country. Nationalization happens because there are crisis in the country, be very careful of any political conflicts and problems that may happen.
Diversification, when a company invests in a lot of sectors, they will minimize the risk of loss when one sector is on the low, and maximizing profits when some sectors are on the high.
Those are some tips to start on Foreign Direct Investments, all in all, avoid complications, find a way to mitigate any losses or avoid it entirely, and be very careful of conflicts that can blow your investments out of the water. Bettors from the really like doing all for the best.