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Foreign direct investment is very risky and companies may end up losing money in the global market. However, this is not to say that a company cannot succeed in the global market through direct investments.
Respond to the following:
Why might an American company want to invest in "your country"?
What are the main risks an American company would face if they chose 'your country' for a foreign direct investment?
Based on your analysis and findings, how can an American company handle these risks? Provide recommendations.
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Determine how this lease would qualify as a capital lease. Prepare the amortization table for the lease and the entries for signing the lease on 1/1/07, the lease payment on 1/1/07.
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