International Finance: China has emerged as a leading recipient of FDI in recent years

Please be as detailed as possible.

How would you explain the fact that China has emerged as a leading recipient of foreign direct investment (FDI) in recent years?

© SolutionLibrary Inc. 9836dcf9d7

Solution Preview

.... However, why India has not successfully, as least so far, attracted FDI as much as China did? And why other huge population countries, e.g. some countries in Africa, are not popular to FDI? Answer this question from market point of view; you may need to pay more attention on "accessible market". If there is a one-million-people-market, it does not simply mean you can target this market for any product. In such a "huge" market, you may make money from food and beverage, or cloths, yet you may not be able to get rich by selling cars or newest computers. Consuming capability will limit the real market size, or the Accessible market. Check the average GDP of China, India and other developing countries, you will see at what level the country will be capable enough for most of the industries that FDIs are interested. ...