Global firms need to account for a "Hassle Factor"

Companies looking to expand their global reach need to carefully consider which countries to do business in. In an interview with The Globe and Mail, Andreas Schotter discusses guidelines he developed called the "Hassle Factor," which looks at various political, social and economic issues in each country. Schotter stresses firms must account for factors that could have a significant negative effect on the relationship between foreign investment potential and realized investment.

“Operating in countries with human-rights abuses could also alienate your existing employees as well as customers, or have a negative effect on employees you have working in that country," says Schotter. "You may lose talent because people just don’t want to work for you anymore, or you may not be able to send someone to such a country to do business.”