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Janjan

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Submitted By janmacanas
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Management 22
(International Business and Cross-Cultural Management)
Jan Ray O. Macanas
3rd Year BSBA FM
The Importance of Investment in an Emerging Country Developing countries, also known as emerging markets, are becoming the driver of global growth. It is expected to grow two to three times faster than developed countries like the US according to the International Monetary Fund. And because of the growth many investors are being pulled in to invest to some emerging markets. This growth is very important among investors because it simply enables them to foresee the future of their investment. (Forbes. “What Makes Emerging Markets Great Invesment?”.www.Forbes.com.) China has become a leading foreign investor among all emerging countries, According to the main stream of international business literature on the topic of multinationals from emerging countries, there are generally five motivations for multinationals to invest abroad; they seek resources, technology, markets, diversification, and strategic asset. A careful analysis of the data and the investment by Chinese multinationals indicates the similar motivations provided by China. Chinese government has, to a great extent, played a crucial role in shaping the structure of the country's outward investment; this is consistent that China's FDI has been part of the government's development scenario. Since the 1980s, the government has required the overseas subsidiaries to achieve one of the four goals--introduction of advanced technology, access to raw materials, earnings of foreign exchange, and expansion of exports. Prominent examples can be found in each of the requirements. The Chinese government has also actively used investment as a vehicle to help strengthen its relationships with other economies, such as those in Africa and recently in the Southeast Asia, and maintain the prosperity of Hong Kong

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