1.1 Background and Significance The main aim of this thesis is to make a research in China-Ukrainian relationships with further identifying of threats and opportunities of their collaboration. The emphasis will be made on the investing in Ukrainian constructional sector of economy. The research objectives are the following: 1. To identify the factors associated with the risks and profitability of investing in Ukrainian constructing business. 2. To analyze the way constructing business is being operated in Ukraine. 3. To identify possible obstacles in China-Ukraine cooperation. 4. To provide suggestions in order to minimize possible risks in China-Ukraine cooperation. According to the United Nations World Economic Situation and Prospects …show more content…
A lot of developing countries are trying to attract investors in their businesses. And on the other hand, there are plenty of investors who are searching for the new perspectives and attractive offers. Generally speaking, this process is beneficial for both parties. If talking about China, it is still far from buying up the world. It is a relative newcomer to big direct investments, and has yet to boast a large hoard of such assets. China’s ODI would be greater if host countries were more hospitable. In the West, Chinese direct investment is viewed with suspicion partly because it is still dominated by state-owned firms. These are considered a threat to competitive markets and, occasionally, to national security. But nevertheless we can observe quite a huge increasing in investing into other countries from China. And it is not a surprise that a lot of Chinese companies are trying to go global by investing different project abroad. It helps them to expand the market share and of course to strengthen the economic position of China in the global market. Ukraine was also very interesting for Chinese investors. After collapsing of Soviet Union Ukraine suffered serious economic problems and thus was not an attractive investment area in the early 1990s. But after stabilizing the situation it has appeared that Ukrainian market is quite
Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese
It is this that has sparked China’s vulnerability to external shocks. In 2011, China’s exports amassed almost $2 trillion, however in Feb 2012, China recorded a $31.5 billion trade deficit as a result of the European sovereign debt crisis in which China’s main trading partners plunged into recession. China’s severe BOGS decrease is an attempt to control growth and a sustained level of 7.5%. Investment policies are also critical for China to achieve economic growth and development. Foreign Direct Investment (FDI) in China is being sought primarily in the redesign of State Owned Enterprises (SOE’s) and in the development of interior provinces. Between 75-80% of World Bank loans to China in 2008 were directed to the central and western regions, the most economically disadvantaged. This promotes increased wealth within China, leading to higher levels of development due to a more positive Human Development Index (HDI), which currently sits at 0.687, up from 0.677 in 2010. Thus, trade and investment are critical factors in ensuring that China’s growth remains sustained at 7.5% whilst still encouraging increases in development.
As discussed in earlier sections, the Rwandan government has a strong desire to reduce the reliance on foreign aid through expansion of the local economy. The lack of financial liquidity in the economy requires injections of funds to help with the major infrastructure projects required for a developed or a middle-income state. The previous section discussed how Rwanda attempts to attract investments through practicing business friendly policies, but it did not include how Rwandan officials are attempting to bring regional and global business investors physically to Rwanda. Officials within the Rwanda Development Board (RDB) such as Chief Operating Officer Serge Kamuhinda, view the importance of bringing investors to view Rwanda’s progress and the business opportunities for the investors. When asked he stated, “Each country is known for specific sector or opportunity. So we (Rwanda) need to convince investors to know who we truly are, not just our past. We have to show them how safe it is, the investment climate, which includes ease of business and tough policies against corruption. Seeing is truly believing.” Rwanda is able to attract investors two visit. The first is by President Kagame meeting with international investors often around the world and bringing them to Rwanda. The second is through major trade conferences.
The growth of the Chinese economy, particularly in the past 20 years, has been staggering, today Chinese competitiveness is no longer confined to lower-end production, and labor--intensive, low-value-added goods. Chinese government are focused on helping Chinese companies move up the industrial value chain, and assisting the international expansion of the Chinese companies’ globalization. And have made efforts to build internationally recognizable brands, government encouragement of international expansion is driven by desire to reduce China’s foreign exchange reserves. For example, according to the Chines government’s work plans for 2015, Chinese government will further promote outward direct investment (ODI) activities, for sure the
a. Vietnam’s economy has grown significantly, expanding at an average rate of 7.5% per annum over the past decade. In 2010, foreign investors registered capital of nearly $18.6 billion (US), in which the actual disbursed capital came to $11 billion. Vietnam offers a welcoming investment climate, including solid economic grown, political stability, a competitive workforce, a gradually more open and transparent market, abundant natural resources and good geographic positioning in the region.
Following the Cold War, China’s relations with Russia developed in positive and constructive ways that endeavored to minimize differences and at times allowed Beijing and Moscow to use the image of closer cooperation to boost their respective international leverage, especially against the United States. For Beijing, the “strategic partnership” with Moscow provided a model for Chinese efforts to ensure stable relations with neighbors and
Tragically this is a marketing strategy for Cisco, an American based firm, to sell high technology products in China. “Generally, foreign firms were unable to establish wholly owned subsidiaries in China as the Chinese government banned direct foreign investment.” [4] Unlike most developing countries, China has been facing with extremely active economic activity and large-scale domestic economies. Together with China’s central planning tends to result in infrastructure investments; this is likely to encourage new entrants.
A risk in construction industry can be stated as any exposure to possible loss. To ensure the successful completion of a project, owners/contractors starting on a project should be able to expose those risks and assess them. And then they must be able to manage those risks. There are many typical and known construction risks that might impact a success of a project. Although it’s very difficult to analysis all the factors
China’s strong political connections on the government level have been useful for its economic activity in partner countries. However, in other countries China’s bilateral relationships have weakened at the local level. Beijing’s past difficulties investing in infrastructure abroad, especially through bilateral arrangements, suggest that many of the proposed projects might end up as expensive boondoggles. Given Chinese construction companies’ poor track record operating in foreign countries (including frequent mistreatment of local workers), a major increase in the scale of their external activities increases the risk of damaging political blowback that could harm Beijing’s image or lead to instability in host countries, especially if efforts do not create lasting benefits for local economies. Enhanced regional connectivity could increase the likelihood of the consequences of poor conduct abroad finding their way back to China.
The major trading partners of Ukraine in 2014 were Germany (17.9%), Poland (13.5%), and Italy (9.3%).
Central and Eastern European countries offer appealing circumstances, such as lower labour costs together with a well-educated labour pool. Therefore, these countries compete with each other for obtaining higher foreign direct investments. More than that, the fiscal system has become extremely supportive in the majority of these countries. As a result, foreign investors began to open new branches in these regions (Birsan, Buiga,2008).
The paper aims to give some insights into the investment environment and the analyses of factors influencing. The study is motivated by the high failure rate of foreign investments in Uzbekistan (Colin, 1998). The findings of the study will benefit both local
Firstly, theatrically speaking, investment is vital for the development. Internally, a country’s development can be driven by high domestic savings. Externally, it can be done by attracting foreign investment.
In general the purpose of conducting this study is to make awareness that how Foreign Direct Investment can influence the economy of any country. This discussion can be held by investigating the following questions:
According to Scissors (2013), As predicted by some and feared by others that the tidal wave of Chinese investment around the world has not materialized. In the first half of 2013, various obstacles to overseas spending by the People’s Republic of China (PRC) kept growth moderately. The dominance of state-owned enterprises has begun to ease but then energy was again the focus, Likewise, in the first half of the year, Chinese investment in the U.S. was substantial,