Get help now
  • Pages 3
  • Words 692
  • Views 394
  • Download


    Verified writer
    • rating star
    • rating star
    • rating star
    • rating star
    • rating star
    • 5/5
    Delivery result 4 hours
    Customers reviews 257
    Hire Writer
    +123 relevant experts are online

    Related Topics

    Foreign Direct Investment in China Essay

    Academic anxiety?

    Get original paper in 3 hours and nail the task

    Get help now

    124 experts online

    YR 12 Economics Assessment Task 1 Extended response AAs a Foreign Direct Investment (FDI) consultant, a feasibility report has been undertaken to provide strategic information of the possibility of FDI in China. The South East Queensland (SEQ) Sheet Metal Company have been contemplating FDI in China, and have employed the FDI consultancy to analyse FDI as an economic strategy in general, and the opportunities available in china. This will provide valuable information and advice to company directors along with suggestion on how to overcome the various pitfalls associated with FDI. (Stimulus Booklet)FDI is the investment by foreign companies in to the international market, which actively involves them in managing local subsidiary companies or the management of their own. The trade between two countries are large contributing factors towards investment and further affect the success and profitability of the business throughout the entire term of establishment.

    Therefore the success of FDI in any country is directly in fluctuation to the countries trade agreement and all-round economic health. FDI for any business is a feasible and profitable consideration, which could initiate the development of new technologies and new international relations that will strengthen economic ties with existing trade partners. (Stimulus Booklet)The history of Chinas Economic prosperity has varied over time but during the last 40 years, drastic changes have occurred. During modern times the economic growth and decline will directly affect firms FDI in China. In the past China has suffered huge losses in resources and labour due to their own inefficiencies and political barriers, which set back progress and continued to ignore obvious signs of a falling Soviet Unions diminishing economic foothold. (Stimulus booklet) These foreseeable implications were ignored and during and between 1958 to 1962 China suffered a great famine and massive economic decline due to the Great Leap Forward suffering losses of up to 9 million people.

    (D. A. King, 1998) Since the death Mao Zedong the Peoples Republic of China (PRC) have initiated strategies to improve Chinas economy by introducing features of the market system that most western countries use, under the leadership of Chairman Deng the successor of Mao Zedong. After the death of Chairman Deng new reforms have continually been added to further encourage the Chinese economy into new sectors appealing to foreign investors, capable of inducing large injections into the local economy. The trends and characteristics of the Chinese economy over the last 2 decades indicate huge growth and continual growth and expansion of the Chinese market.

    (Economic Systems)Main considerations for FDI in China are due to recent trends and existing trade agreements between Australia and China involving vast amounts of base metal commodities, which are increasingly being exported to China. Following recent data, Chinas booming economy has fuelled new demand highs and massive increase in price of non-agricultural commodities, which in turn are required to satisfy the demand for more steel to build infrastructure, industry and high wealth commercial offices that are being erected all over Chinas east coast hot spots. A potential and lucrative market entry strategy, worth considering is offering SEQ Sheet Metal Company a complementary manufacturing plant to add value to raw materials shipped to Chinese plants. (The Australian 12/05/04)The analysis of the internal strengths and weaknesses and external opportunities and threats (SWOT), aspects of a firms strategic planning, future growth and efficient development of FDI, is important information needed to make justifiable decisions based in the requirements set by the SEQ sheet metal. (Exporting to the future) The obvious strengths that could be taken into consideration are as follows:o Highly qualified experts trained in Australia o Motivated investors The weaknesses that may be encountered are as follows: o Lack of cultural knowledge-may cause weak bonds between employees and can lead to employees being offended o Language barrier- communication barriers, cause inefficiencies through misunderstandingso Poor anticipation of local labour inexperience- untrained personnel will cost time and money to traino Poor co-operation- leadership, friendship and team bonds may not be formed o Inefficient recourses to set up efficient production The external opportunities and potential of FDI in China are as follows:o Vast supply of resources- large import of commodities o Cheap labour o Importing base materials from

    This essay was written by a fellow student. You may use it as a guide or sample for writing your own paper, but remember to cite it correctly. Don’t submit it as your own as it will be considered plagiarism.

    Need custom essay sample written special for your assignment?

    Choose skilled expert on your subject and get original paper with free plagiarism report

    Order custom paper Without paying upfront

    Foreign Direct Investment in China Essay. (2019, Feb 04). Retrieved from

    Hi, my name is Amy 👋

    In case you can't find a relevant example, our professional writers are ready to help you write a unique paper. Just talk to our smart assistant Amy and she'll connect you with the best match.

    Get help with your paper
    We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy