How to Get the Top 6 Factors for Your Economics Homework

Foreign Direct Investment is the capital invested in a country. FDI offers manufacturing capabilities for world markets and native consumption. It is an instrumental tool because it is used to bring both goods and services to the global marketplace. In addition, the influx of foreign investment brings about confidence in the business and geopolitical climate of the country. China is one of the countries that are reaping the benefits of FDI. The ministry of commerce in China reported that the FDI in 2010 for the first time surpassed $100billion. So what are the factors that affect the Chinese FDI?

Availability of capital

China is currently the world’s largest recipient of foreign capital. FDI represents the capital that a foreign investor is willing to risk within a local region. China has a thriving economy. The capital markets and conducive business environment create large swaths of investable capital. A portion of this investable capital is converted to FDI.

Competitiveness

China brags of developed infrastructure, availability of resources (both physical and labor), development of the business value chain, workforce skills, and productivity which makes it an attractive destination for investment capital. This makes the country gain a competitive edge over other nations like India, which vie and compete for the same investment capital.

Regulatory Environment

The government of China has enacted policies and rules that favor investment. Unlike other countries with excessive regulations that hinder entrepreneurial and commercial activities, the national government has removed cumbersome compliance items that may encourage an investor to set up the facility elsewhere.

Stability

A stable political and economic environment facilitates an influx of FDI. With stability, investors are able to gauge the future better. On the contrary, rioting and constant social unrest are not conducive to business. Although criminal activities, kidnappings, blackmail, and counterfeit currency have been a problem in China, the government is fighting to combat all the problems that are trying to undermine the efficacy of trade activities.

The local Chinese market

China is known for its sheer size population. This enables foreign enterprises to sell to a sizeable local market. As a result, this makes China an attractive destination for FDI. The Chinese economy is continuing to prosper and mature. High-end industries such as robotics, engineering, information technology, and healthcare can now gain a bigger footprint in China since the FDI determinants are enhanced. Do You Need Help with Your Economics Assignment? EconomicsHomeworkHelper.com has the solutions to all your intricate economics assignment. Our economics homework answer service is equipped with competent and knowledgeable assignment writers. Our experts hold degrees and PhDs in Economics and Business fields from renowned universities across the globe. You will be impressed by how fast and accurately they solve that assignment that is stressing you. The experts who provide our clients with first-class Economics assignment answers have been chosen after vigorous screenings and tests. You can trust them with your academic papers and be assured of receiving genuine and original solutions. Get in touch with our customer support team via our live chat platform or email for more information.