However multinationals willing to invest in these

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challenges, which influence the investor’s decisions. However, multinationals willing to invest in these economies should address such issues and make sound decisions before investing in them. Equally, it is accurate that some countries are experiencing turmoil that makes investors ignore them; thus, it becomes hard for them to attract any businesses. However, it is clear that some companies are willing to withstand the risks and continue with their operations other than pulling out their business in such states. Fourthly, as Michael states, it is true that companies will always face challenges when doing global businesses regardless of the research and planning they take. I agree with Michael that multinational will always be attracted to other economies due to cheap labor and the willingness to take risks on the frontier economies. It is true that some countries are less developed; thus, they must depend on foreign businesses to acquire some products and services, which are not available in their economy. Moreover, companies establish a strong foundation by doing business locally as this gives a great potential to venture in the international markets which are highly profitable. Fifthly, I concur with Narineh posting that technology is the main reason for the growth of many businesses. Equally, it is true that many international companies nowadays help in the expansion of sales, as they can buy and get more resources and spread their products all over the world. Apparently, most multinationals are expanding their investments to developing economies as they are deemed to have a high potential for growth. However, I disagree with Narineh that
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Surname 3 consumer purchasing power in these economies is low and they cannot guarantee the growth and profitability of a business. I believe that for a company to enjoy success in these economies. They should understand the consumers’ tastes and preferences and work towards satisfying their needs. As a result, they will be able to enjoy increased profitability and growth in developing countries.
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  • Spring '16
  • Roaa

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