Corporations initiate foreign direct investment (FDI) by launching a business operation in a country abroad. This can be fulfilled by establishing a new wholly-owned affiliate, acquiring a local firm, or creating the opportunity of a joint venture in the host economy. Foreign direct investment fits into the sustainable development concept for its potential to foster the arising possibilities on the social, economic and business platform of emerging market nations through the investment of capital, knowledge and employment. The advantage of foreign direct investment for a firm is twofold: not only allows FDI to penetrate important foreign markets that entail supply chains, distribution networks, and end customers, it also grants a pivotal competitive window of opportunity to attain resources, economies of scale as well as economies of scope in vital corporate processes such as production, logistics and marketing.
“The sun, with all those planets revolving around it and dependent on it, can still ripen a bunch of grapes as if it had nothing else in the universe to do”Galileo Galilei (15/02/1564 – 08/01/1642), Italian physicist, mathematician, astronomer and philosopher
In order to determine whether an organization should engage in FDI rather than attending to foreign markets through for instance exporting, Van Clamsfield International Ltd. offers:
Foreign direct investment initiates an important collaboration between private and public organizations as private firms are progressively showing an interest in taking on the role of corporate citizens through exercising the rights and obligations of political actors. This social acknowledgement by corporations not only creates access to affordable goods, the adoption of environmental-friendly measures, an improved infrastructure and healthcare as well as increased employment opportunities in the host nation, it also provides an adequate return on investment for the foreign investor as well as a steepened learning curve concerning the development of low-cost alternative business models and a deepened comprehension of the stakeholder engagement process.
Van Clamsfield International Ltd. is focused on exhibiting that an organization’s reason for existence is situated outside the organization itself. An organization’s welfare is determined by the impact of its actions and its relation with the outside world and together they create the organization’s future contribution to all of its constituents. This future contribution can only be reached if the organization learns to be emphatic towards its customers and stakeholders. Quality is experienced in the meaning and value it will hold for the customer. To make a lasting and successful future contribution - that is in the best interest of the organization and align with a social and environmental accountability - an organization has to reach for a co-producing atmosphere wherein together with its client base, the organization breathes life into an unexpected value, the independent client was not even aware of he needed. This illustrates the power of FDI to be a driver of change, to offer an organization to engage in substantive sustainable development and make a profit at the same time. In essence, sustainability is the starting point from which unique buying value for an organization’s clientele is founded. As a result, the individual client experiences the organization’s unparalleled future contribution; the value it holds is created just for him and yet the client finds he is an essential part of the co-creating process. Van Clamsfield International Ltd. is committed to shaping a (judicial) contextual environment surrounding FDI that reaches an effective tie-in with the organization’s customer relationship management and stakeholders.