China's FDI in Africa: Economic Impact on GDP and Trade

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Added on  2021/01/02

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This report examines the economic impact of China's Foreign Direct Investment (FDI) in Africa. It investigates the relationship between China's investments and key economic indicators such as Gross Domestic Product (GDP), unemployment rates, exchange rates, and the balance of trade. The report explores how FDI influences these factors and discusses the role of globalization in facilitating these economic interactions. Furthermore, it highlights the importance of managing these economic aspects to ensure sustainable development and improve the quality of life. The research is supported by references to academic journals and books that provide context to the analysis of China's economic activities in Africa. The report also touches upon the impact of these FDI operations on the setting up of businesses within the region.
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Table of Contents
GDP and Unemployment rate: ....................................................................................................1
Inflation rate: ...............................................................................................................................1
Exchange rate:..............................................................................................................................1
Balance of trade:..........................................................................................................................1
REFERENCES............................................................................................................................2
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GDP and Unemployment rate:
This will also improve the sales and revenue of the firms in much suitable and
appropriate way. It will lead the organisation to have a good rise in Gross domestic production
(GDP's) of the organisation in return of FDI implemented, that will help to maintain the effective
quality of living for the population of these nations.
China will look after the proper management of its Gross domestic production (GDP) in
order to improve the sales and thus will support the carrying out of business operations in the
most effective way (Mi and et.al., 2017). Besides this, the FDI will reduce the unemployment
rate within the organisation and thus will help in suitable planning of the FDI operations of the
organisation.
Inflation rate:
China will be requiring looking after the inflation rate that is been carried out within the
country. This will help in developing suitable policies which will assist the organisation to carry
out the FDI operation's which will improve balance of trade and globalisation within African
countries. A proper globalisation will help in improving setting up of business within an
organisation (Yu, 2017).
Exchange rate:
The fluctuation of exchange rate of currency will help in proper maintaining of the
operation that are been carried out by China in order to maintain the FDI operations in African
countries (Adolph, Quince and Prakash, 2017.).
Balance of trade:
The following of the globalisation with suitable involvement of local busiensses will help
in meeting the operations related to FDI in African countries that will help in improving the
overall business by China.
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REFERENCES
Books and journals
Adolph, C., Quince, V. and Prakash, A., 2017. The Shanghai effect: Do exports to China affect
labor practices in Africa?. World Development. 89. pp.1-18.
Mi, Z. and et.al., 2017. Chinese CO 2 emission flows have reversed since the global financial
crisis. Nature communications. 8(1). pp.1712.
Yu, H., 2017. Motivation behind China’s ‘One Belt, One Road’initiatives and establishment of
the Asian infrastructure investment bank. Journal of Contemporary China. 26(105).
pp.353-368.
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