In evaluating the risks and profitability of Foreign Direct Investments (FDIs), Multinational Corporations (MNCs) often have to contend with some issues that would not normally arise with their home based major capital investments.

Required:

1. Identify and discuss at least four of those issues, using as your reference point a US Major technology company contemplating making a major investment in China in the year 2020. 2. If the company must invest in China, what are some of the measures the US company can take to manage the risks arising from this proposed investment in China.