Anheuser-Busch Inbev Analysis

1619 Words Apr 3rd, 2013 7 Pages
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
…show more content…
Even some changes are taking place, many tasks needed to be accomplished to construct the legal system which benefits market economy. The existing legal basis, legislation procedure and operating mechanism are not fully suitable with the requirements of market economy (Rongala, 2007 see in Tarun, 2012).

Benefits for FDI in China
4.1 Economy is affected in many ways
The benefits brought by FDI to China are apparent. Economy is influenced by FDI in a number of ways. FDI involves transfer knowledge in the host country, which will create an increase on the existing stock of knowledge through labor training, the transfer of skills, and the transferring of new managerial and organizational experience. Also, it can help local corporations to access to advanced technology by capital accumulation in host countries (Mello, 1999 and Mello, 1997). Furthermore, FDI may allow China to develop in technology and knowledge which are not readily available locally, as a consequent increase productivity growth through the economy (Jose, 2003).

4.2 trade expansion
China’s expansion in trade is accompanied by the increase of FDI and growing trade by foreign invested enterprises. (Fung, 2002) Contribution of FDI has increased dramatically since the early 1980s, especially in the 1990s. During 1980 and 1985, trade by FDI constituted less than 0.6% of total export and 2.1% of total import. The shares went up to 7.3% and 12.8% respectively in the second half of 1980s. In
Open Document