................................... 19 Page 1 of 36 © 2012 Factiva, Inc. All rights reserved. Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail Economics for Everyone: Going Global–FDI Fables–FDI in Multibrand Retail India Infoline News Service 5,801 words 2 May 2012 Indiainfoline News Service INFOIN English Copyright © 2012. Indiainfoline Ltd. FDI- Foreign Direct Investment Context: NEWS FDI in multi-brand retail to go ahead,TNN (TIMES OF INDIA) Govt says committed to multi-brand retail FDI FE BUREAU Aviation FDI: Cautious, Centre set to take allies on board, BUSINESS STANDARD India has been ranked at the third place in global foreign direct investments in 2009 and will continue to remain among the top five attractive destinations for international investors during 2010-11, according to United Nations Conference on Trade and Development (UNCTAD) in a report on world investment prospects titled, 'World Investment Prospects Survey 2009-2011' released in July 2009. A report released in February 2010 by Leeds University Business School, commissioned by UK Trade & Investment (UKTI), ranks India among the top three countries where British companies can do better...
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...EAS6211: Investing in East Asia (as 28 September 2015) Dr Harald CONRAD (Japan, Module Organizer) Dr ZHANG Zhong (China) MODULE OBJECTIVES: This module will introduce students to key theoretical issues relating to globalization, foreign direct investment and the activities of multinational corporations. The module will then consider in detail foreign direct investment, business culture, employment and human resource management, seen from the perspective of multinationals investing in Japan and China. The module will provide students with a well-rounded knowledge of the issues facing firms seeking to establish global networks and the managers within those firms charged with the task of running the overseas operations and managing workers in a different cultural context. The module will encourage students to think more deeply about the process of overseas investment and the challenges of managing and working in the global economy, thus equipping them with some of the key skills and knowledge required of managers in global firms. Dr Harald Conrad – Contact Details: 6/8 Shearwood Road, Room B-07 Ext: 28431 Email: h.conrad@sheffield.ac.uk Dr Zhang Zhong – Contact Details: 6/8 Shearwood Road, Room A-02 Ext: 28339 Email: zhong.zhang@sheffield.ac.uk The lecturers’ office hours will be posted on their office doors during Week 1 of Semester 1. MINIMUM REQUIREMENTS: Regular attendance is required at all lectures and seminars; students should read the...
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...A Comparative study on inflows of Foreign Direct Investment in India & China !! Vivek Bhurat (MBA) # 3-4-1013/22, Flat No. 201, Vijetha Sai Mohini Apts., Barkatpura, Hyderabad - 500027. Mobile : 9000400076, E-mail : svivekbhurat@gmail.com Abstract The purpose of this article is to highlight the important determinants of FDI inflow in India & China. This article attempts to answer the question: "What are the important factors attracting FDI inflow in China then that of India?" It is concludes that market size, population, low labor cost, quality infrastructure, open policies to international trade, economic policies, tax policies, etc. are important factors of FDI inflow. Theoretically, it will fill the gap in the literature and help to the economists and investors to understand the This study aims to helps to know the future of india in terms of development in reference to Foreign Investment. The changing trends in the government & economy of india have been the indicators of development of India. The main objective of this study is to compare the flow of FDI in INDIA & CHINA and to bring the revolution in the development of india by the schemes taken by india to attract foreign investment. The crucial step in this revolution is the campaign “Make in India” an intiative by Shri Narendra Modi, Honourable Prime Minister of India. This paper also highlights the foreign direct investment (FDI) policy under the campaign “Make in India”. Introduction ...
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...IN CHINA DETERMINANTS OF FDI IN CHINA Shaukat Ali and Wei Guo1 ABSTRACT Why and how firms take advantage of foreign opportunities, especially via foreign direct investment (FDI) has been much documented. China, as a major emerging market, has attracted significant flows of FDI, to become the second largest receipt. This paper briefly examines the literature on FDI and focuses on likely determinants of FDI in China. It then analyses responses from 22 firms operating in China on what they see as the important motivations for them to undertake FDI. Results show that market size is a major factor for FDI especially for US firms. For local, export-orientated, Asian firms, low labor costs are the main factor. The paper concludes with managerial implications for businesses wish to exploit opportunities in China. INTRODUCTION The past few years has seen a tremendous growth of foreign direct investment (FDI) that has exceeded both world output and world trade. China is by far the largest recipient, and in 2004 surpassed the USA as host destination. It has consequently attracted an increasing attention from multinational businesses. Since China adopted the reform and opening-up policy in the late 1970s, foreign investment has played an increasingly important role in its economic growth. According to the World Investment Report for 2004 by the United Nations Conference on Trade and Development, China absorbed a total of US$53.5 billion worth of foreign direct investment...
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...Introduction of Foreign Direct Investment Foreign Direct Investment (FDI) is known as the long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer of technology and expertise. In other words, foreign direct investment is the cross-border corporate governance mechanism through which a company gains productive assets in another country. FDI is different from other major forms of foreign investment in that it is motivated largely by the long-term profit prospects in production activities that investor directly control (Wong, 2005). Wong also says that almost most of the developing and least developed countries worldwide equally participated in the process of direct investment activities. Over a long period of time, foreign direct investment (FDI) forms a major part of investment in most industrial and some developing countries. Besides that, he did explain that some FDI is intended to utilize local natural resources. Sometimes it is to employ relatively cheap labour, and sometimes to produce goods near to markets. Moreover, foreign direct investment can be a significant driver of development in poor nations. According to Katerina, John and Athanasios (2004), it provides an inflow of foreign capital and funds, in addition to an increase in the transfer of skills, technology, and job opportunities. Furthermore, they said it would be difficult to generate this capital through domestic savings, and even if it were...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...International Monetary Fund (IMF) defined Foreign Direct Investment (FDI) as “ an incorporated or unincorporated enterprise in which a foreign investor owns 10% or more of the ordinary shares or voting power of an incorporated enterprise or the equivalent of an unincorporated enterprise”. (IMF, 2004). Gilomore, O’s Donnel, Carson and Cummins (2003) stated, “There are eight factors that are influencing the choice of host market in terms of FDI. They are knowledge and experience of foreign market, size and growth of the foreign market, government emphasis on FDI and financial incentives, economic policy, transportation material and labor cost, availability of resources, technology and political stability.” Since 1970s FDI inflows increased in Malaysia reaching its peak around the 1990s and since then fluctuating and recently experiencing outflows of foreign funds. (TheGlobalEconomy, 2016). The objective of this essay is to discuss factors influencing a decrease in FDI in Malaysia. Slow economic growth is one of the factors that have affected FDI in Malaysia. According to Hill, Cronk & Wickramasekera (2013), “Economic growth is an increase in the productive capacity and national output of a country, measured by the rate of increase of GDP”. China being Malaysia’s second biggest export market after Singapore has a direct impact on the Malaysian economy. (Hui, 2014). Because of a lower economic growth in China, demand for Malaysian goods and services have declined in the...
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...CASE STUDY CHINA “UNBALANCED” In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy. We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction with its principal economical partners .. We will conclude our analysis by outlining some of the problems associated with China’s growth strategy and the missing components that would be needed in order to become a free economy and to achieve sustainable growth in the future. During the time of Mao Zedong’s term in power, China was a communist state that had a closed economy, a population of just fewer than one billion and state-owned companies that were financially unsuccessful and a drain on the economy. The choice of economic systems is based on the belief that the system will bring the highest goods to the majority of the people, most of the time. Mao Zedong adopted a Chinese nationalist and anti-imperialist outlook with which he ruled China...
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...a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / e c m o d Foreign direct investment and China's regional income inequality☆ Kang Yu a, Xian Xin b,c, Ping Guo a, Xiaoyun Liu d,⁎ a School of Economics and Management, Zhejiang Forestry University, Zhejiang, 311300, PR China Center for Rural Development Policy, China Agricultural University, Beijing, 100083, PR China c College of Economics and Management, China Agricultural University, Beijing, 100083, PR China d College of Humanities and Development Studies, China Agricultural University, Beijing, 100083, PR China b a r t i c l e i n f o a b s t r a c t China's widening regional income inequality coupled with its pronounced regional disparity in foreign direct investment stock since 1990 has claimed the attention of many scholars. While some researchers confirm regional disparity in China's foreign direct investment, others attribute the widening regional income inequality to this regional disparity. This paper thus assesses the impacts of China's stock of foreign direct investment on its regional income inequality using simultaneous equation model and the Shapley value regression-based decomposition approach. Our results suggest that China's stock of foreign direct investment has accounted for merely 2% of its regional income inequality. Furthermore, the contribution ratio of per capita foreign direct investment stock to China's regional income inequality has relatively been on a steady decline...
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...Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers An assignment on Major Determinants and Hindrances of FDI inflow in Bangladesh: Perceptions and Experiences of Foreign Investors and Policy Makers Submitted To: S. M. Zahidur Rahman Associate Professor Submitted By: Tasnuba Nowrin ID-090316 Fatema Khatun ID- 090349 KHULNA UNIVERSITY Business Administration Discipline BBA Program 4th Year, 1st Term Course Title: Financial Management and Institution Course No: FIN-4203 September 10, 2012 Summary on previous article Foreign Direct Investment (FDI) is considered as a crucial component for economic development of a developing country. Countries that are lagging behind to attract FDI are now formulating and implementing new policies for attracting more investment. The determinants which play as a driving force for attracting FDI are geographical location, cheap labour cost, and government attitude towards liberalization of the existing laws of the host country, skilled manpower, incentives for investors, and exemption of taxes etc. According to Bangladesh Board of Investment Handbook (2007) Bangladesh offers an attractive investment climate compared to other South Asian Economies. But among the emerging economies India and China are the desired choice for investment (Baskaran and Muchie, 2008). FDI is considered as an important tool for economic development in a developing country. If...
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...Medium-Sized U.S. Businesses Interested in Investing in China: Lessons That Can Be Learned from Taiwanese Companies Xun Wang Department of Sociology/Anthropology University of Wisconsin -Parkside David A. Ralston Management Department Michael F. Price College of Business University of Oklahoma Investing in China has been one of the hottest and most critical issues in the ever-changing business world since the early 1980s. Huge amounts of foreign investment poured into China during this period primarily because of China's huge market, plentiful cheap labor, and rapid economic development (Davies, 1998; Luo, 1998; Shi, 1998; Sun & Tipton, 1998; Wang & Ralston, 1995). From 1980 to 1988, the number of foreign-joint ventures approved in China increased from 348 to 15,955, and the amount of foreign capital pledged increased from $1.7 million to $28.2 million (Pomfret, 1991). The foreign investment in China totaled $27.5 in 1993 and that amount rose to $37.5 billion by 1995. At present, there are over 318,000 foreign funded companies in China with the total amount of realized foreign investment from 1978 to 1998 totaling $250 billion (Shi, 1998). While the interest in investing in China is worldwide, two major investors are the U.S and Taiwan (Pomfret, 1991; Shi, 1998; Sun & Tipton, 1998; Walker, 1996; Wang & Ralston, 1995;). What is also interesting to note is that while almost all U.S. companies investing in China are large multinational corporat ions, many of the investors...
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...Why is China investing in Africa? Evidence from the firm level By Wenjie Chen, David Dollar, and Heiwai Tang1 August 2015 Abstract China’s increased trade with and investment in Africa has boosted the continent’s growth rate but has also generated considerable controversy. In this paper we investigate China’s outward direct investment (ODI) in Africa using macro and micro data. The aggregate data on China’s ODI in African countries reveal that China’s share of the stock of foreign investment is small, though growing rapidly. China’s attraction to resource-rich countries is no different from Western investment. China’s ODI is uncorrelated with a measure of property rights and rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM’s database on all Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms’ transaction-level data, we find that Chinese ODI is profit-driven...
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...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is requested...
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...1 INTRODUCTION Nigeria as a nation is a democratic country with over 170 million people. With a presidential system of government. It comprises of 36 states and 777 local government area. The connection between Nigeria and China dates as far back to 1971. At the same time when penning this thesis the president of Nigeria is in china to expand this relation. The Chinese Ambassador in Nigeria, once said sometime last year that China and Nigeria have longstanding relations that dates back as far as 45 years. Nigeria is China second biggest trade partner in engineering in Africa. It supposed that by the end of next year our relations of trade will be as high as $13 billion China is still to build a world renowned company like General Electric and Apple. The impression most of the foreign countries have of china is that their business men and entrepreneurs are out to gather wealth, rather than for business strategy, innovation and style of administration. But yet china has one of the most effective business management approach in the 21st century. The Chinese administration cannot be like the Japanese six sigma or invent new management technique, but offers more skills of business management than companies more occidental could offer. The Chinese businesses offer administration's common imperatives: responsiveness, improvisation and flexibility. These competencies supplies them a critical facet. The Chinese Companies have discovered to handle differently over the past 30...
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