Direct investments abroad make it possible for German companies to open up new markets abroad. Yet such investments also entail risks through high capital commitments. If, for example, the investment is lost through expropriation or the framework conditions of existing investments are altered by state intervention, this can quickly threaten the existence of SMEs. In this article Dr. Sabine Konrad and Arne Fuchs explain the various safeguard mechanisms available to German businesses, and examine their costs and benefits.
