Assessing the Risk Reducing Strategies in International Investment

Abstract

International investment presents huge potential gains in economic development, technological lead and exchange of culture. But it also poses major risks to the number of successful ventures that we conduct. This chapter starts with a general discussion of how the above-mentioned factors could significantly affect risk exposure related to international investment, followed by an appraisal section on different approaches focus on some popular methodologies employed in analyzing all kind of risks and mitigation factotums for effectively reducing those assessed risks. This will provide them with the necessary foundation, a good business perspective to take calculated decisions and in turn improve the robustness and profitability of their international investments. It starts by providing definitions of terms like foreign direct investment (FDI), portfolio investment, and international trade, as well as discussing the particular forms of risks that happen in each kind of investment.