Advantages Of Medical Tourism

859 Words4 Pages
Market Entry Method Medical Tourism is grooving market in Asia. There no restriction to invest Medical Tourism sector in the Maldives, this is one of the sector which is open to Foreign investment. Most of companies are investing foreign countries due to many reasons especially financial benefits. For the service sector only best available two option for market entry is Foreign Direct Investment and Joint venture considering these two options there are advantages and disadvantages Foreign Direct Investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company. Advantages of Foreign Direct Investments: in the context of Foreign direct investment, advantages and disadvantages…show more content…
Foreign Direct Investment also offer some advantages for foreign countries. For starters, Foreign direct Investment offers a source of external capitals and increased revenue. It can be a tremendous source of external capitals for a developing country, which can lead to economic development for example, if a large hospital is constructed in the Maldives, the country will typically have to utilize at least some local labor, equipment, and materials to construct it. This will result in new jobs and foreign money being pumped in to economy. once the hospital is constructed, Hospital will have to hire local employees and will probably utilized at least some local materials and services. these new Jobs means that locals have more money to spend, thereby creating even more jobs. additionally, tax revenue is generated from the services and activities of the hospital, taxes imposed to hospital employee income and purchase, and taxes on the income and purchase now possible because of the added economic activities created by hospitals. Developing governments can use this capitals infusion and revenue from economic growth to create and improve its physical and economic infrastructure such as buildings roads, communication systems, educational…show more content…
Prior to commencing operations, partners usually allocate resources, consign risks and potential rewards, and delegate operational responsibilities to each member while preserving autonomy. the partners may provide knowledge of government workings, regulations, internal markets and distribution know-how. this knowledge may be particularly valueable to your unfamiliar territory. It is important for a small and medium company to go for joint venture, it will reduce the Risk and taxes, small companies with limited, manpower and the need to reduce and share risk may find a join venture an ideal entry strategy in over seas market, by utilizing the management skills, experience and knowledge of the foreign market by the local partners. Joint venture companies profits are shared among there partners, there are many factors that can lead to disagreements between the partners, such as dispute over efforts and marketing strategies, differences in management
Open Document