Related Analysis on Some Phenomenon of International Business

2838 WordsNov 12, 200812 Pages
1. Executive Summary International business has grown so rapidly in the past decades because of strategic imperatives and environmental changes. Along with the growth of international business, some more issues have been becoming very phenomenal in relation to ways of doing international business as well as aspects of redefining global competition. In this essay, will cite some articles to interpret the phenomenon related to international business, such as Foreign Direct Investment (FDI) and Anti-dumping issue which are mostly associated with events of international business in China. 2. Topic 1: Foreign Direct Investment (FDI) Trade is the most of obvious form of…show more content…
 Supply factors. A firm’s decision to undertake FDI may be influenced by supply factors to cover production costs, logistics, availability of natural resources and access to key technologies 7  Demand factors. Firms might also engage in FDI to expand the market for their products. The demand factors that encourage FDI include customer access, marketing advantages, exploitation of competitive advantages and customer mobility.8  Political factors. Political factors may enter into a firm’s decision to under FDI. Firms may invest in a foreign country to avoid trade barrier by the host country or to take advantage of economic incentives by the host government.9 2.2.4 The growth of FDI across worldwide economy In the years after the Second World War global FDI was dominated by the United States, as much of the world recovered from the destruction wrought by the conflict. The US accounted for around three-quarters of new FDI (including reinvested profits) between 1945 and 1960. Since that time FDI has spread to become a truly global phenomenon, no longer the exclusive preserve of OECD countries. FDI has grown in importance in the global economy with FDI stocks now constituting over 20 percent of global GDP. In the last few years, the emerging market countries such as China and India have become the most favoured destinations for FDI and investor confidence in these countries has soared. As per the FDI Confidence Index compiled by A.T. Kearney for 2005, China and
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