Education About Asia

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Essay, Resources

Chinese Foreign Direct Investment: Looking Abroad from an Emerging Economy

Foreign direct investment (FDI) can occur when a firm either establishes operations or purchases a controlling interest in the business operations of a company in another country. Companies often engage in FDI for three straightforward reasons: to grow their sales, to expand their geographical market range, or to take advantage of the firm’s own assets (e.g., brand name, technologies). If a firm is to increase its revenue, domestic sales are often not enough, and the company is required to exp...