Pros and Cons of Investing Abroad

In this episode of Trade Talk, we talk about the successful strategies companies are using to take advantage of the opportunities while minimizing their risks.

According to EDC research, companies that successfully invest abroad tend to be more innovative, productive, and better able to compete than companies that stay at home. These investors are not just large businesses; many small to medium-sized companies are learning how to make investing abroad work for them. In this episode of Trade Talk, we talk about the successful strategies companies are using to take advantage of the opportunities while minimizing their risks.

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If a Canadian company owns all or part of a business in a foreign country, it is engaging in Canadian direct investment abroad, or CDIA. These investments can range from relatively simple and inexpensive ones, such as setting up an overseas sales office, to much larger projects—or building your own manufacturing plant abroad. This white paper will help you understand the basics of CDIA and the advantages it might have for your business.

From Exports to Affiliates – Canadian Direct Investment Abroad (PDF)

Feature story, tips and case study

While there is no such thing as a one-size fits all approach to making these investment, this feature article covers the most common steps that companies take to decide if they are ready to take on this challenge.

​Investing Abroad: Is it for you? – A special information feature (PDF)

Customer case study

Dealing with political risks in foreign markets
Most companies operating in foreign markets are exposed to some level of political risk. In the case of Montreal-based Fordia, the company estimates that it faces this type of risk in about half the countries where it has set up its affiliates, with the hazards ranging from governmental instability to unfavourable regulatory changes. Given that each affiliate costs $2 to $4 million just to set up, this kind of risk has been a growing concern for the company. Learn how Fordia manage this risk head-on.

​Read their story
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