How can current risk and political risk be minimized when one is making a

foreign direct investment?

M5D1: Future InvestmentForeign direct investment (FDI), which involves the transfer of
capital, managerial, and technical assets to a foreign country, has surged in recent years. In
this discussion, you will analyze a recent foreign direct investment in China. Read the
section “Changes May Influence Future Investments in China” from your textbook (p. 432).
Respond to the following:Explain the similarities and differences between net present value
(NPV), profitability index (PI), and economic value added (EVA).Although China has been
actively campaigning for foreign investment, how do you think having a communist
government affects its foreign investment?How can current risk and political risk be
minimized when one is making a foreign direct investment?Post your primary response.
Read any postings already provided by your instructor or fellow students. See the SBT
Discussion Rubric for how you will be evaluated for this activity. Remember to read the
feedback to your own major postings and reply to it throughout the module.See the Course
Calendar for due dates for posts and responses.Compose your work using a word processor
and save it, as a Plain Text or an .rtf, to your computer. When you’re ready to make your
initial posting, please click on the “Create Thread” button and copy/paste the text from your
document into the message field. Be sure to check your work and correct any spelling or
grammatical errors before you post it.Evaluation CriteriaReview the SBT Discussion Rubric
located in the “Start Here” section of the course for more information on grading criteria.