Article Abstract:
Foreign direct investment in China has helped transform the country's economy in the 1990s. Among others, it has contributed to the growth of exports, the rise in employment and the increase in the revenues of local and central governments. It has also encouraged technological change and improved management techniques. The East Asian economic crisis and the lack of profitability of many foreign ventures, however, have led to a slowdown in investment commitments. To counter this slowdown, China must open up local markets and alter its macroeconomic policies to enhance domestic demand.
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Article Abstract:
An analysis of the impact of NAFTA reveals that Mexico and Canada have not been competing for American direct investment. This was demonstrated with a simple model that linked foreign direct investment differentials to relative demand and relative factor costs in Mexico and Canada. The lack of competition for American direct investment is attributed to the differing industrial compositions of American direct investment in the two countries.
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Article Abstract:
India's commercial policy has served to limit foreign investment and multinational companies. The article suggests that India's economic situation would respond positively to a loosening of protectionist policy in some areas.
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