Anheuser-Busch Inbev Analysis
Contents
1. Introduction 2
2. Advantages of investing in China 2 2.1 Abundant human and energy resources 2 2.2 Development in relevant infrastructure and openness to international trade 3
3. Disadvantages of investing in China 3 3.1 Low income of people 3 3.2 technology and unequal investment 3
4. Benefits for FDI in China 4 4.1 Economy is affected in many ways 4 4.2 trade expansion 4
5. Evidence of the negative effect for FDI in China 4 5.1 FDI threaten local enterprises and capital transfer 4 5.2 Unbalanced investing 5 5.3 Environmental problems 5
6. Suggestion 5
7. Conclusion 6
8. Bibliography 7
The impact of foreign direct investment in China
Introduction
Foreign direct investment (hereafter referred to as FDI) has created significant impacts in China after the Opening-Reform in the late 1970s, China has been successful in attracting FDI, which has been played an crucial role in the economic development of China. China has now become the second largest foreign direct investment (FDI) beneficiary country in the world following the US. Annual FDI inflow was below $US100 in 1979, but exceeded $US580 billion in 2006, with an annual growth rate of close to 30%. (Fung et al. 2004). This trend is expected to continue in the foreseeable future, especially given the country’s entry into the WTO. Many advantages can be identified in FDI, including boost employment rate, calculate capitals and increase domestic competitive. On the other hand, there are also some drawbacks of FDI in China. This essay will start with a display of the advantages and disadvantages of investing in China, then describe benefits and drawbacks brought by FDI and finally provide several correspondence suggestions.
Advantages of investing in China
2.1 Abundant human and energy resources
China has a large population of approximately 1.3 billion indicating a huge consumption power and market. The purchasing power of Chinese people is increasing dramatically in the
1. Introduction 2
2. Advantages of investing in China 2 2.1 Abundant human and energy resources 2 2.2 Development in relevant infrastructure and openness to international trade 3
3. Disadvantages of investing in China 3 3.1 Low income of people 3 3.2 technology and unequal investment 3
4. Benefits for FDI in China 4 4.1 Economy is affected in many ways 4 4.2 trade expansion 4
5. Evidence of the negative effect for FDI in China 4 5.1 FDI threaten local enterprises and capital transfer 4 5.2 Unbalanced investing 5 5.3 Environmental problems 5
6. Suggestion 5
7. Conclusion 6
8. Bibliography 7
The impact of foreign direct investment in China
Introduction
Foreign direct investment (hereafter referred to as FDI) has created significant impacts in China after the Opening-Reform in the late 1970s, China has been successful in attracting FDI, which has been played an crucial role in the economic development of China. China has now become the second largest foreign direct investment (FDI) beneficiary country in the world following the US. Annual FDI inflow was below $US100 in 1979, but exceeded $US580 billion in 2006, with an annual growth rate of close to 30%. (Fung et al. 2004). This trend is expected to continue in the foreseeable future, especially given the country’s entry into the WTO. Many advantages can be identified in FDI, including boost employment rate, calculate capitals and increase domestic competitive. On the other hand, there are also some drawbacks of FDI in China. This essay will start with a display of the advantages and disadvantages of investing in China, then describe benefits and drawbacks brought by FDI and finally provide several correspondence suggestions.
Advantages of investing in China
2.1 Abundant human and energy resources
China has a large population of approximately 1.3 billion indicating a huge consumption power and market. The purchasing power of Chinese people is increasing dramatically in the
Bibliography: FUNG, K.C., HITOMI, I., and SARAH, T., ed., 2002. conference on “China’’s Economy in the 21st Century” to be held on June 24-25, 2002, Hong Kong: Foreign Direct Investment in China: Policy, Trend and Impact. GALINA, H., and CHERYL, L., 2011. Are there productivity spillovers from Foreign direct investment? Pacific Economic Review, 16(2), 135-153 HAIYING, W., 2004. economic research center discussion paper: A Comprehensive Evaluation of and Policy Recommendation to Foreign Direct Investment Environments in Western China. Nagoya University. KELLY, L., 2011. Foreign Direct Investment in China Manufacturing Industry –Transformation from a Low Tech to High Tech Manufacturing. International Journal of Business and Management, 6(7), 15-27. SARUMI, A., 2006. The Impact of FDI on Growth in Developing Countries: An African Experience. Master thesis, J.NK.PING University. SIZHONG, S., (2011). Foreign Direct Investment and Technology Spillovers in China’s Manufacturing Sector. The Chinese Economy, 44(2), 25-42. TARUN, K.B., (2012) Advantages and Disadvantages of FDI in China and India, international Business Research, 5(5), 164-174. USMAN, M., MIR, H., and AAMIR, M., 2011. Does Market Size Affect Foreign Direct Investment? A Case of China. Interdisciplinary Journal of Contemporary Research in Business, 3(7), 1026-1033.