Potential And Opportunity For Foreign Direct Investment In China Essay

Length: 2 pages Sources: 5 Subject: Sports - College Type: Essay Paper: #67155338 Related Topics: Macro Environment, Chinese Philosophy, Noise Pollution, Urbanization
Excerpt from Essay :

International Business Across Chinese Border

Heightened global interdependence characterizes Today's economic world. Currently, the world is experiencing an unprecedented degree of cross-border economic and capital interdependence, both with developed and developing economies. The global economic system has dramatically transformed; we are experiencing power being transferred to new players. India and China have become two stars of global interconnectivity and economic expansion.

In fact, just recently, the government of China opened their markets to international investors by implementing laws and regulations that match the World Trade Organization (WTO) policies. Such a philosophical change encourages foreign direct investors in China. Nonetheless, there are various risks involved in expanding to China. One of them is that China's culture is rooted on the Chinese communist, socialist philosophy, which affects the political climate thus the future FDI (Balasubramanyam & Wei, 2004).

Looking at India, they recorded a decline regarding economic growth than most OECD economies as per 2013 (Agarwal, 2009). This slowdown is attributable to the reversal of monetary and fiscal stimulus that was launched as a response to worldwide financial turmoil. Another factor is the weakening global demand that seems to be weighing on exports (Agarwal, 2009). However, currently, projections indicate that India's economy has hit the bottom and has taken a recovery path. This has restored confidence, revamped by the pro-growth agenda and monetary policy reforms of the new government. Moreover, the depreciating currency is also helping revive the export sector.


Nevertheless, as far as the environment is concerned, India's air quality has been negatively affected by urbanization and industrialization, leading to massive health issues. Therefore, regulations, pressure groups, and noise control organizations have been established to control waste. On a similar note, just like India, the Chinese government has focused on environmental issues in the nation. In fact, the Environmental Protection Administration has been upgraded to, the Ministry of Environmental Protection after realizing the significance of environmental protection. Further, the environmental legislation in China has been empowered and has been effective in stemming environmental deterioration. Today, China is part of the Asia-Pacific Partnership, advocating for clean development. This partnership has served to unite the government and industries to enact common strategies that minimize climate change and pollution (Lederman et al. 2009).

Social trends have revolutionized the business world, both in India…

Sources Used in Documents:


Agarwal, M. (2009). India's Economic Future: Education, Technology, Energy, and Environment. New Delhi: Social Science Press.

Balasubramanyam, V. N., & Wei, Y. A. (2004). Foreign Direct Investment: Six Country Case Studies. Cheltenham: Elgar.

Lederman, D., Olarreaga, M., & Perry, G. (2009). China's and India's Challenge to Latin America: Opportunity Or Threat? Washington, D.C: World Bank.

Morrissey, O., & Zgovu, E. (2011). The Impact Of China and India On Sub-Saharan African Countries: Opportunities, Challenges, And Policies. London: Commonwealth Secretariat.

Cite this Document:

"Potential And Opportunity For Foreign Direct Investment In China" (2016, March 18) Retrieved January 23, 2022, from

"Potential And Opportunity For Foreign Direct Investment In China" 18 March 2016. Web.23 January. 2022. <

"Potential And Opportunity For Foreign Direct Investment In China", 18 March 2016, Accessed.23 January. 2022,

Related Documents
Foreign Direct Investment and the Impact of Terrorism
Words: 3956 Length: 12 Pages Topic: Economics Paper #: 31922188

Foreign Direct Investment and the Impact of Terrorism Foreign Direct Investment provides many opportunities for both the expanding company and the host country. The host country receives an influx of business into their economy and the expanding company receives the ability to expand into new and emerging markets. There are many factors that weigh into a decision to expand and invest in another country. Of course, one of the key factors

Japan and Foreign Direct Investment
Words: 2785 Length: 6 Pages Topic: Economics Paper #: 20027333

Japanese inflow has not been as productive, due to ongoing bans by the country that were only relaxed in the last decade. Because of this, in 2003, Prime Minister Junichiro Koizumi announced that the government aims to double foreign direct investment in Japan in five years to stimulate its stagnant economy and create employment. The government's Japan Investment Council (JIC), which is chaired by Koizumi, announced the program would focus

Foreign Business in China Has
Words: 2679 Length: 8 Pages Topic: Business Paper #: 43523967

8). Wiles (2003) note ways in which Chinese practices of technical communication are affecting foreign businesses operating in China and some of the Western methods that China has to learn to be effective. Specifically, Wiley notes how Western companies have developed single-souring skills that the Chinese will have to adopt to be successful in technical communication. Chinese culture is a high-context culture in which information is more tacit and less

China and the World Trade Organization on
Words: 8173 Length: 30 Pages Topic: Economics Paper #: 75116965

China and the World Trade Organization On December 11, 2001, China officially became a member of the World Trade Organization (WTO), opening the country's doors to change and a new economy. One year after china's entry into the WTO, the country reported great success, showing better-than-expected economic growth and fulfillment of its WTO commitments, despite the shaky world economy. The excellent performance of the Chinese economy was clearly demonstrated by its 8% growth

China Corporation Chinese Firms Have
Words: 2505 Length: 7 Pages Topic: Economics Paper #: 11362252

L billion in 2007. This growth can be seen to represent the increasing interest of Chinese firms in acquiring resources, technology and brands outside of their own country (Carpenter & Wyman, 2009). Lenovo was able to seal the deal essentially by acting like a Western firm. It did not approach the deal from the same perspective as say, the way that CNOOC did with its unsolicited bid and ultimately failed bid

Foreign Exchange Risk Management in
Words: 5032 Length: 15 Pages Topic: History - Israel Paper #: 86866079

In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental initiatives in eastern Europe as well. Likewise, Arbed of Luxemburg was involved in steelmaking facilities in the former East Germany. According to Mangum et al., "The rising market for improved galvanizing for automobiles, appliances, canning, and other uses is producing