Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

What will be an ideal response?

Companies treat decisions to replace depreciated assets or add to the existing stock of capital from retained earnings in a foreign country somewhat differently from original investment decisions. Once committed to a given locale, a company may find it doesn't have the option of moving a substantial portion of the earnings elsewhere—to do so would endanger the continued success of an operation in a given foreign location. Aside from competitive factors, a company may need several years of almost total reinvestment and allocation of new funds to one area in order to meet its objectives. Another reason a company treats reinvestment decisions differently is that once it has experienced personnel within a given country, it may believe they are the best judges of what is needed for that country, so headquarters managers may delegate certain investment decisions to them.