As the vice president of finance for a company producing and selling electronic switchboards, you are considering foreign investment to build a plant to assemble electronic components. A source in China advises you that a town near Shenzhen may be an excellent location for a new plant. Chinese workers are well educated and willing to work for reasonable wages. Projected construction costs are acceptable. Both rail lines and airports are nearby, and the current Chinese government seems politically stable. The town even has a technical college that will be an excellent source for skilled employees. The plant will ship most of the finished electronic components back to the United States.

1.  Do you know everything you need to make an investment decision?

2.  If not, what else do you need to know about investment in foreign countries?

3.  What does it mean to say that law is the foundation of the private enterprise system?