Potential Markets

ABSTRACT

Before a business can invest in any country it has to obtain information on the regulations of that country. In order to for a business to be prosperous a manager has to search for potential markets and sites that will prove to be beneficial to the company.

The flow of capital from nation to nation in exchange for stakes of ownership in domestic companies and other assets is known as foreign investment. This generally means that foreign investors have taken an active role in the management of their investments. Foreign works both ways between countries of relatively the same and equal economic stature according to Investopedia (2012). There seems to be a globalization trend where large firms have a huge amount of investments in a variety of countries. Some companies view foreign investment as a good sign and a source for economic growth in the future (Investopedia, 2012).

The purpose of foreign regulations is to carry into effect and enable the operation of the Foreign Investment Act of 1997 according to the Foreign Investment Regulations of the Federated States of Micronesia (n.d.). The foreign investment regulations are rules set in place to help with the flow of capital and attract potential investors to a business. The regulations are just like the laws of a country and have the same effect.

Since the foreign investment regulations are different for every country, the one being discussed in this report is Fiji’s regulations. Section 5 is the Reserved Activity section which lists the activities that a citizen of a country can participate in or the type of business that they can own. Such activities are owning a Milk Bar, Taxi Business, A Day care Centre, a Plant Nursery and Care, Night Club, or other said businesses. Section 6 of the foreign investment regulation is a list of restricted activities. In order for foreign investors to be considered or pursue investment in the activities they have to meet certain requirements (Investment Fiji, n.d.).

If an individual or company wants to invest in fishing, the equity held by the citizens and the foreign investor must be at least 30 percent with an owner’s contribution of $500 thousand or paid up capital in the form of cash from the date of operation to be brought into Fiji within the recommended time frame. When investing in forestry the foreign investor must undertake value adding and must have at least $500 thousand in contributions from the owner or paid up capital for companies in the form of cash from the date of operation according to Investment Fiji (n.d.).

In manufacturing tobacco products the investor has to use a minimum of 75% locally grown and processed tobacco in the production of domestic cigarette as well as have $500 thousand in owner contributions or capital that is paid up in the company in the form of cash from the date of operation. Tourism is an