Nobody downloaded yet

Effect of FDI on Chinas Technological Status - Essay Example

Comments (0) Cite this document
Summary
The study explores how FDI affects the technological status of China. Technology being a critical component of any country’s economy remains highly crucial for the development of any country. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Effect of FDI on Chinas Technological Status
Read TextPreview

Extract of sample "Effect of FDI on Chinas Technological Status"

Download file to see previous pages The researcher states that China is an emerging economy and has continued to experience great economic success starting about thirty years ago when the country achieved economic liberalization. China has successfully participated in trade and investments at the global level, thus is well integrated into the economy at the global level. Most importantly, the FDI inflows in China today are considerably high and the many foreign firms in the country continue to enhance its growth economically. Technology being a critical component of any country’s economy remains highly crucial for the development of any country, including China. In China, the policymakers have in the recent years paid great attention to technological development in the country and the major aim is to make China a technologically sophisticated country. Being an important component of the economy, it is no doubt that FDI in China influences the country’s technology. China has experienced a remarkable increase in its FDI, and this has continued to grow to start from the mid-1980s. The paper shows data on the yearly FDI inflows of China between the year 1985 and 2014 and this exhibits an increase in FDI inflows in China, even as this stood at $2 billion in the year 1985 and grew to reach $128 billion in the year 2014. In all the developing countries of the world, China ranks among the four largest receivers of FDI and in the year 2014 estimates by the United Nations indicated that China was the worlds largest destination for FDI inflows and Hong Kong and the United States followed behind. It is predicted that there will be persistent FDI inflows in China even in the future because currently, they are still modest. Foreign companies contribute immensely to the growth of the economy in China, even as these are the source of FDI in the country. These foreign-invested enterprises remain core to Chinas foreign trade even as they continue to contribute to the growth of foreign trade in China. In the year 2014, foreign companies accounted for 46.3 percent and 45.9 percent of Chinas imports and exports respectively, even though the peak was experienced in the year 2006 when the percentage of imports and exports accounted for by the foreign companies were 59.7 and 58.2 respectively. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Effect of FDI on Chinas Technological Status Essay”, n.d.)
Effect of FDI on Chinas Technological Status Essay. Retrieved from https://studentshare.org/macro-microeconomics/1698992-please-refer-order-instructions-topic-that-relates-to-at-least-two-of-the-terms-given
(Effect of FDI on Chinas Technological Status Essay)
Effect of FDI on Chinas Technological Status Essay. https://studentshare.org/macro-microeconomics/1698992-please-refer-order-instructions-topic-that-relates-to-at-least-two-of-the-terms-given.
“Effect of FDI on Chinas Technological Status Essay”, n.d. https://studentshare.org/macro-microeconomics/1698992-please-refer-order-instructions-topic-that-relates-to-at-least-two-of-the-terms-given.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Effect of FDI on Chinas Technological Status

Successful FDI

...and Demerits FDI: Benefits to the home country FDI helps a country improve its balance of payment and thus bring economic advantages. The multinational company by directly investing enterprises abroad can make use of raw materials from the host country and therefore home country can save its raw materials. It more over creates revenues to the government. The investment of E-Walky in China will certainly help US improves its balance of payment and generates revenues for the government. The home country also will be benefited from improved political and international relations. As Hill (2009) noted, the home country will benefit from employment effects as well as when the...
5 Pages(1250 words)Essay

FDI Albania

...of foreign direct investments that are based on export, the dimensions of the host country are important as there are opportunities for bigger economies of scale, as well as spill-over effects. For example, Fig. 1 shows the FDI inflows to China and other developing countries. World Bank reports that although foreign direct investments in China have been going strong in China, other developing countries have its fair share of development also. As shown in the chart, FDIs in developing countries had more impact than China taken altogether. (Pamade & Anoyitas). Furthermore the population of a country plays an important role...
22 Pages(5500 words)Dissertation

The Effect of Democracy on FDI (Foreign Direct Investmant)

...?Effect of Democracy on FDI The recent economic recession has detrimentally affected world markets. Within this context of understanding countries have mobilized in a process of development where one of the primary strategic approaches has been the procurement of foreign direct investment (FDI). Still, there are varying perspectives on the most efficient approach to this aspect of development. Some of the most prominent investigations have linked governmental structure to foreign direct investment. This essay examines the positive effect of democracy on foreign direct investment in terms of dynamic political decision-making and increased policy stability;...
3 Pages(750 words)Term Paper

FDI Strategy

...?Running head: FDI STRATEGY FDI Strategy 29th November Introduction Based on the stiff competition that is currently experienced by local firms, most of them have taken the initiative of going global as a way of capturing more customers. One of the major strategies that companies have emulated is establishing new branches in foreign countries where the market is unexploited. To be successful in foreign markets, it is imperative to adopt effective marketing strategies including proper pricing and advertisement as a way of enhancing consumer awareness. Additionally, firms should take into account the economic and political instability of foreign country that they want to invest. This is...
6 Pages(1500 words)Assignment

Chinas Economy

...? China’s Economy China’s Economy China has achieved a miraculous economic growth, which has ensured that the country enjoys economic dominance and might surpass the United States. According to Subramanian, (2011), ECONOMIC DOMINANCE IS THE ABILITY OF A STATE TO USE ECONOMIC MEANS TO GET OTHER COUNTRIES TO DO WHAT IT WANTS OR PREVENT THEM FROM DOING WHAT IT DOES NOT WANT. The military power, technological advancement and the currency of China have drastically improved over the past years, which is a sign of economic dominance. These aspects of the economy combined with the fast growth are likely to surpass those of the United States. According to IMF, THE...
3 Pages(750 words)Assignment

FDI Strategy

...be to solve the problem of volatility clustering in the exchange rates of Egypt. Technically dealing with the time series data of changing exchange rate risks would help the company to forecast the future possible exchange rates in Egypt. If the company finds that the exchange rate of Egypt would devaluate in future, then it can easily withdraw or cease its Green Field investments from the nation (Papaioannou, 2006). 4. Determine how your MNE could leverage government policies to maximize the profitability of FDI. The country of Egypt became independent from United Kingdom’s protectorate status in 18th June 1953 and became a Republic. The capital of the country is in Cairo. The elected government of the...
6 Pages(1500 words)Essay

FDI Strategy

...in the technological and cultural field are making it easier for MNEs to break into emerging markets and take advantage of the growing number of consumers (Peng, 2012). McDonald’s Corporation probably has the largest chain of fast food restaurants around the world. It is situated in almost 119 countries, and has its headquarters in the United States. The corporation sells almost anything that is considered fast food, ranging from soft drinks to desserts for its ever-growing customer base. Sadly, one region that may not boast of having a branch of this corporation is North Korea. Challenges and advantages of FDI for the MNE One of the main advantages of FDI for the MNE is that the host...
5 Pages(1250 words)Essay

Chinas Threats

...with their economic strategies. Due to the rapidly growing economy of the Chinese, the Americans must increase their efforts in improving their own economic competence and maintaining a high status in the global economic market. They need to maintain their industrial, financial, and technological capacity to make sure that they stay way in front of China. The United States even finds China a greater threat than the Soviet Union since capitalism in China is a more forceful challenger than the Soviet's communist system (Hawkins, 2004). China's rising economy creates both opportunities and challenges for the worldwide economy. The...
8 Pages(2000 words)Essay

Chinas Outward FDI in Latin America

... first characteristic is the expansion of ownership of an investing company where the state has the command over the shares. Four types of investing companies have taken the dominant position such as financial transnational group, trading transnational group, the industrial group and the technological transnational group. 2. Another characteristic of China's outward FDI is the expansion of investment in marketing sectors, focusing on the development of resources. Such sectors include - farming and animal husbandry, industrial manufacturing, transportation, tourism, general trade, real estate, finance, resource development, dining and consulting services. Other than these, Chinese companies prefer to invest more in sectors... in which there’s...
23 Pages(5750 words)Research Paper

FDI

...another key investment partner of Nigeria as its FDI investment in Nigeria account for about 20% of the nation’s total inflows. Additionally, China is expanding its trade relations with Africa, and its direct investment in Nigeria as of 2013 stood at USD 6billion. Some of the significant sources of FDI inflows in Nigeria include; Brazil, Netherlands, France and Italy. On the other hand, in 2013 Scotland attracted a total of eighty-three international foreign direct investment projects accounting for an 8% increase in investment inflows as compared to the previous year. According to UNCTAD Report, Scotland is the second most attractive region in the United Kingdom I terms of foreign...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Effect of FDI on Chinas Technological Status for FREE!

Contact Us