Foreign Direct Investment

1 . Why might an American company fate to robe in mainland ChinaThere many reasons why an American community may want to invest in China single 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 maturation in trade between countries and the speed by which new 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 overall effect of this is the creation of more than jobs and the increase in overall market productivity for the countries involved .

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

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