Investment In China Essay

• China’s inroads into Africa come at the expense of Africa’s citizens. Says Bremmer, “The Chinese quid pro quo typically involves lots of Chinese content, lots of Chinese labor that they’re sending over to these countries to work, which hurts local unemployment issues. And of course, the availability of commodities, including food, to be exported to China. There’s sometimes a Faustian bargain in these countries.”

Globalization has, for better or worse, altered the economic arena for every country in the world. For many less developed countries, globalization has leveled the playing field so that their economies can compete with the larger, more developed ones such as the United States and other large western economies. For instance, technical engineers in India and China are now just as qualified as engineers in America, but at half the cost. The once large and prosperous service sector in the United States as well as telemarketing services have largely been sourced to India as a large exodus of American multinational corporations find cheaper workers who deliver comparable quality. This then seems to be the essence of globalization - businesses

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.

Trade had a positive and/or negative effect on the people who were located in the regions of China and the Americas. People in the world region of China had many positives. The Americas had both positive and negative results. Some positives for China included, a good ripple effect in its economy and a lot of tributes being sent. Positives for the Americas included an expansion of knowledge, as well as discovering more from the world.

According to the World Bank, from 1993 to 1998, poverty rate has reduced by 14 percent in developing countries, similar to about 107 million people. This may result from receiving foreign investment that plays an important role in local economy growth. For example, the proportion of population living in poverty in India decreased by half in the two decades, from the 1970s to 1990s, while the number of Chinese in poverty declined by approximately 210 million during twenty-one years, from 1978 to 1999 (Healey 2008). In other words, the standard of living is improving due to the benefits of international economic activities.

There would be many possible implications on the Chinese economy if they expanded their infrastructure investment. Expanding infrastructure investment may increase Chi-na's attractiveness as a destination for FDI. Other countries such as India have to com-pete for the same investment; China and India have similar comparative advantage’s i.e. low labour costs however an investment on infrastructure could put China at an advantage as firms would rather allocate in a destination with a better infrastructure. If firms decide

1.The International Labor Organisation states, “ African countries are increasingly appreciating the potential of linking infrastructure investments to employment creation and poverty reduction, thereby addressing both deficits in the fight against poverty.” (http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_policy/---invest/documents/meetingdocument/wcms_392965.pdf)

In accordance with our previous discussion, as promised, attached is our proposal to provide business investment plan for Eagle’s Nest Hotels Inc., prepared by the following staffs: Weng Hong Hoh, Kang Yi, Nicklas Ivarsson and Moneeb Aziz.

With a gross domestic product (GDP) calculated at the equivalent of $11.06 trillion and an average growth rate of 1.84 percent, China has the potential to surpass the United States' economy by the year 2030 (citation 1). China's rapid GDP growth is caused mainly by state investment, high exportation, and successes with e-commerce (citation 2). However, China was not always a country eager to open its doors to economic opportunity. Instead, the government strove to maintain self-dependency and to limit influence from other countries. Through the decades of isolation, many countries attempted to gain trade relations with China. These attempts usually were unsuccessful. It wasn't until the late twentieth century until China began forming the economic

Foreign to Africa has caused little to no outside investment in business within the continent and a sizable portion of the continent’s savings are

In today’s world of global trading, multinational corporations that are looking to expand on profits turn out to operate against the welfares of the world’s poorest countries. In the documentary, “Stealing Africa,” the film director, Christoffer Guldbrandsen, brings forward the concerning economic attention of the country of Zambia, located in South Africa. Zambia is known as the third largest copper reserves across the world, owned by multinational corporations globally. Due to such a heavy abundance of natural resources in Africa, the majority of the economy of Zambia revolves around the mining industry, which is like the backbone of the country. As the natural resources in Zambia remain rich, multinational companies, specifically Glencore, grew in investments resulting in the guilt of tax avoidance and undervaluing copper, which resulted in a downfall for the revenue of copper in the nation of Zambia. Guldbrandsen talks about the country of Zambia’s abundance of natural resources, yet their struggle to remain above the poverty line, as it is ranked in the top 20 poorest countries. Guldbrandsen insists that due to privatization starting from the year of 2001, the mining industry in Zambia has taken a downfall. Although the country of Zambia is very rich in resources, maintains the top copper mine in the world, a person a day lives below a dollar and almost eighty percent of the population remains unemployed.

The superimposing factor that gives South Africa such an advantage over other prospective African business environments is that it possesses of a very powerful and sophisticated vantage-point geographically. South Africa is strategically located for manufacturing and exportation into several regions globally and can be an unmitigated platform for MNC’s who may be interested in a venture within this region. The important advantages include regional competitiveness, combined with reduced operational costs and a significantly prominent market access (Safrica.info, 2011).

I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.

The In recent decades Chinese construction firms have become important and influential players in the international market, over last decades, especially in developing countries in Asia, Africa and Latin America (Zhao, et al., 2009). The Chinese government?s strong support and encourag encouragement es has facilitated Chinese construction firms to explore pursue the overseas markets. The data from the China Statistics Yearbook (2015) displays states that the international turnover value produced by Chinese construction firms increased from $17.468 billion dollars in 2004 to 142.411 billion dollars in 2014; their overseas contracted value grew from $23.844 billion dollars in 2004 to $191.756 billion dollars in 2014; and

The country is a key investor within the East African commmunity, while the largest chunk of intraregional trade is due to Kenya. However, economic