Foreign Direct Investment

1 . Why might an American company mass to robe in mainland ChinaThere some(prenominal) reasons why an American fraternity may want to invest in China iodin of the main reasons is that given the challenges that Globalization has presented there are many invigorated opportunities and problems that companies in the United States face today . The aging in trade between countries and the speed by which mod technologies can be acquired erases previous advantages that other countries possessed in the manufacture of goods and can be said to have leveled the sparing playing field to encourage the entry of new comers . The boilersuit effect of this is the creation of more than jobs and the increase in general market productivity for the countries involved .

A single inapt which previously could only trade with its neighboring countries can at wiz time market its goods internationally and increase its income and pull ahead economic growthAll these new changes make in imperative for an American company to invest in China if it wants to uphold militant on a global scale This is because China is one of the largest consumer markets in the orbit . Sourcing and producing in China will alter American Companies to remain competitive not only in China further the rest of Asia as well secondly , investments in China are necessary in to head advantage of the cheaper factors of performance . Studies have shown that in the past louver (5 ) years , Wal-Mart has more than doubled! its imports from Asia . It has purchased over US...If you want to gain a blanket(a) essay, order it on our website: BestEssayCheap.com

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