The investment entry decision is the outcome of a lengthy process that ordinarily involves several managers from different functions and at different levels of the company organizations. We can structure this process as a sequence of checkpoints that must be passed before the final approval of a foreign-investment proposal.

1.    Should we investigate foreign – investment proposal?

2.    Is the present investment climate in the target country acceptable?

3.    Will the investment climate remain acceptable over our strategic planning period?

4.    Will the investment project meet return on investment and other objectives after taking account of business and political risks?

5.    Have our entry negotiations with the host government reached a satisfactory outcome?

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