Question: What are the pitfalls to avoid when investing in overseas activities? The following key issues have been identified as important: Lower cost offshore does not

What are the pitfalls to avoid when investing in overseas activities? The following key issues have been identified as important:

  • Lower cost offshore does not always mean gains in efficiency.
  • Choose your model carefully; either run your own offshore operation or outsource.
  • Get your current employees to be supportive, otherwise they can hinder the process.
  • Be prepared to invest time and effort because quality control can be challenging.
  • Treat your overseas partners as equals in your business dealings.


Instructions

a. Explain how the above list of key issues in offshore investments can have an impact on future cash flows associated with an offshore investment.

b. Discuss the ethical implications of encouraging current employees to help a company shift jobs overseas.


Step by Step Solution

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Lower cost does not always mean gains in efficiency This implies that the cash flow savings obtained from lower cost inputs overseas labor for examp... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

290-B-C-A-B (861).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!