Foreign Investment Case Study

Good Essays
8.1 Tony Li

We all know that the foreign investment is a necessary part of global expansion. Many developed countries prefer to invest developing countries. For instance, the US has invested much more fund in China. Since the initiation of its market reforms in the 1980’s. China has been a preeminent recipient of foreign direct investment (FDI). Until 2011, there is over $1.2 trillion have been invest in China as foreign direct investment, it made Chinese industries has been transformation, and contributed enormously to the nation’s industrial output. In addition, the more foreign manufactures, the more Chinese subsidiaries have dominated (Wei, Xiao & Yuan, 2014).

When a multinational company announces as new project in a poor county, it is usually a Sause for celebration. Especially when this project would not hurt the environment
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However, FDI will limit their local companies, and they would not have their own companies. Also, it will bring extra competition. Otherwise, competition may not a good thing for economy. It may destroy their local companies. So in some countries, they cannot allow foreign direct investment (Jain, 2015).

In Shanghai, there are many foreign investments have left. Because of change, those investors have frustrated about the economy in Shanghai as well as the worse and worse environment. They could not bear the bad weather even in Hong Kong (International Business Times, 2015). We should that China have a great change in economy and abstract lots of foreign company to invest in China. However, the increasing rent, labor, pollution. That make too many companies consider that China is still a better place to invest. And now, India and Vietnam may be a next choice for them to invest.

Reference: (2016). Trans-Atlantic Free Trade Agreement (TAFTA). Retrieved October 21, 2016, from:
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