What Are the Risks Associated with Horizontal Direct Investment?
While HDI offers numerous advantages, it also comes with its own set of risks:
Cultural Differences: Misunderstanding local cultures and consumer behavior can lead to business failures. Regulatory Challenges: Navigating foreign legal and regulatory landscapes can be complex and costly. Operational Risks: Managing operations in different geographical locations can strain a company's resources and capabilities. Political Instability: Changes in political environments can affect business operations and profitability.