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Foreign Direct Investment (FDI)

   

Added on  2021-04-24

10 Pages2149 Words67 Views
Running head: FOREIGN DIRECT INVESTMENTForeign Direct Investment of Abbot Australia in ChinaName of the Student:Name of the University:Author Note:
Foreign Direct Investment (FDI)_1
1FOREIGN DIRECT INVESTMENTTable of ContentsIntroduction......................................................................................................................................2Foreign Direct Investment in China................................................................................................2Environmental Analysis...................................................................................................................3Major Supply and Demand..............................................................................................................5Conclusion and Summary................................................................................................................6References........................................................................................................................................8
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2FOREIGN DIRECT INVESTMENTIntroductionExpanding the business in the foreign country is not an easier function for the businessmarketers. In spite of the considerable benefits availed from the foreign investment process, thebusiness companies require considering the effectiveness of the external and internal forces aswell. It is notable that the diverse political, cultural, and economical scenario creates the directimpact on the FDI (Foreign Direct Investment) (Reddock, 2017). It is necessary to identify theseexternal influences that may affect the business profits, especially during the expansion of thebusiness in the foreign market (Young et al., 2010). The study would explore the foreign directinvestment of Abbott Australia, which has captured the leading position in the pharmaceuticalmarket. The company is focusing on expanding business in China and earning the benefits fromthe FDI trade. Therefore, the study would explore the external influence, such as political,economical, social, technological, and cultural factors on business. The discussion of the foreigntrade investment in China and the supply demand value would also be discussed in the study. Foreign Direct Investment in ChinaAccording to Kouznetsov, Dass Schmidt (2014), foreign direct investment refers to theinvestment of the capital resources in a country that offers the service capabilities and bestinfrastructure to both the world and the native consumers. FDI is considered as the beneficialinstrument that is used for bringing goods and services to the globalised market place. Campolmi& Gnocchi (2011) pointed out that the most benefit FDI holds is the capital flow between thesuppliers and the host regions. It has been observed that China has acquired the leading positionin capitalizing such benefits. The Commerce Ministry of China suppressed the FDI rate almost$100 billion for the first time. Over the years, the rte of FDI increased up to 17.4%, which was
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