...small, though growing rapidly. China’s attraction to resource-rich countries is no different from Western investment. China’s ODI is uncorrelated with a measure of property rights and rule of law, whereas Western investment favors the better governance environments. As a result, Chinese investment in strong and weak governance environments is about the same, but its share of foreign investment is higher in the weak governance states. The micro data that we use is MOFCOM’s database on all Chinese firms investing in Africa between 1998 and 2012. We use key words in project descriptions to code the investments into 25 sectors. This database captures the small and medium private firms investing in Africa. Contrary to common perceptions, there are few projects in natural resource sectors. Most projects are in services, with a significant number in manufacturing as well. In our country-sector-level regressions based on firms’ transaction-level data, we find that Chinese ODI is profit-driven, just like investors from other countries. In particular, our regressions show that Chinese ODI is relatively more concentrated in skillintensive sectors in skill-abundant countries, but in capital-intensive sectors in capital-scarce countries. These patterns are mostly observed in politically unstable countries, suggesting stronger incentives to seek profits in tougher environments. Finally,...
Words: 7801 - Pages: 32
...Foreign direct investment in least developed countries (LCD’S): Some 850 million people, or 12 per cent of the world’s population, live in the 48 least developed countries (LDCs). These countries are the world’s poorest, with per capita GDP under $1,086,and with low levels of capital, human assets, exports and technological development. The Programme of Action of the Least Developed Countries for the Decade 2001-2010 adopted at the Third United Nations Conference of the Least Developed Countries in 2001 in Brussels stated that foreign direct investment (FDI) was an important source of capital formation, know-how, employment generation and trade opportunities for LDCs and called for accelerating FDI inflows into these countries. Since 2001, both LDC governments and their development partners have indeed pursued proactive FDI promotion policies. Although there was an abrupt interruption of the secular trend in 2009, FDI flows to LDCs grew at an annual rate of 15 per cent during 2001-2010 as a whole to reach an estimated $24 billion by 2010, compared with $7.1 billion in 2001, and their share in global FDI flows rose from 0.9 per cent to over 2 per cent. The Brussels Declaration contained 30 international development goals for LDCs, including the attainment of an investment to GDP ratio of 25 per cent and an annual GDP growth rate of at least 7 per cent in order to achieve sustainable development and poverty reduction in LDCs. The Brussels goal of 7 per cent growth is being...
Words: 4486 - Pages: 18
...OCCASIONAL PAPER NO 23 China in Africa Project January 2009 China in Mozambique: A Cautious Approach Country Case Study at io n al Af fai r s Paula Cristina Roque rn te f In eo t tit u . Ins hts can fr i ig ins South A l a Glob African perspectives. ABOUT SAIIA The South African Institute of International Affairs (SAIIA) has a long and proud record as South Africa’s premier research institute on international issues. It is an independent, non-government think-tank whose key strategic objectives are to make effective input into public policy, and to encourage wider and more informed debate on international affairs with particular emphasis on African issues and concerns. It is both a centre for research excellence and a home for stimulating public engagement. SAIIA’s occasional papers present topical, incisive analyses, offering a variety of perspectives on key policy issues in Africa and beyond. Core public policy research themes covered by SAIIA include good governance and democracy; economic policymaking; international security and peace; and new global challenges such as food security, global governance reform and the environment. Please consult our website www.saiia.org.za for further information about SAIIA’s work. This paper is the outcome of research commissioned by SAIIA’s China in Africa Project. ABOUT THE CHINA IN AFRICA PROJECT SAIIA’s ‘China in Africa’ research project investigates the emerging relationship...
Words: 9089 - Pages: 37
...actually have a socialist economic structure, you can see some similarities to the United States – but there are some really stark differences. Below, you will see some of the most socialistic nations in the world today: China Denmark Finland Netherlands Canada Sweden Norway Ireland New Zealand Belgium Despite popular myths, there is very little connection between economic performance and welfare expenditure. Many of the countries on this list are proof of that, such as Denmark and Finland. Even though both countries are more socialistic than America, the workforce remains stronger. China In China the government manages and controls the economy. Many of the domestic companies are owned and run by the government. Recently, the Chinese economy has become more geared towards capitalism, but is still officially socialist. Life in China remains relatively less stressful and more relaxed than life in capitalist countries like America. Denmark Denmark has a wide range of welfare benefits that they offer their citizens. As a result, they also have the highest taxes in the world. Equality is considered the most important value in Denmark. Small businesses thrive, with over 70 percent of companies having 50 employees or less Finland Finland has one of the world’s best education systems, with no tuition fees and also giving free meals to their students. The literacy rate in Finland is 100 percent. Finland has one of the highest standards of living in the world. Like...
Words: 3736 - Pages: 15
...Sanisha Maqina, Chumani Introduction This assignment examines the strategic relationship between China and Africa. The first section provides statistics that reveal the extent of trade between China and Africa since 2000. The specific statistics center around the amount of natural resources exported to China and compares that to the amount of imports from China. After gaining insight into the extent of business between the two, one can begin to understand why Africa is so important to China. This importance is discussed in more detail against the backdrop of the historical background of these two regions. The following section explains the strategy that China has adapted to trade with Africa and introduces the concept of the “Chinese Model”. This model highlights the driving forces behind China’s strategic decisions and introduces some controversial arguments around some of the methods that China has adopted. An important part of this discussion is the comparison of China’s strategy with that of the West (i.e. regions like the United States of America (USA/US) and the European Union (EU). Some interesting statistics reveal that Africa is attracting significant amounts of Foreign Direct Investment (FDI) and is most likely to continue doing so. 1. Analyse and Discuss the Extent of Trade between China and Africa since 2000. (Jones S. 2012; Alessi C. 2012; China Daily.Com 2011; African Development Bank 2011; The Forum on China-Africa Cooperation 2011) China...
Words: 5597 - Pages: 23
...production can come from anywhere in the world; communication is instantaneous; and financial markets are inextricably linked, as the events of 2008 demonstrate. Individual businesses operate across borders in a variety of ways – they can do this directly, through the formation of strategic alliances or through merger and takeover. It is clear then that businesses need to be aware of the global context of their markets. Having read this chapter you should be able to: G G G G Learning outcomes understand the difference between globalisation and internationalisation outline the main elements of globalisation illustrate the role of the multinational enterprise introduce the implications of globalisation for business Key terms Capital market flows Consortium Cross-subsidisation Customs union Emerging economies Foreign direct investment (FDI) Franchising Free trade area Globalisation Hyperglobalisation Internationalisation International trade Joint venture Licensing Multinational enterprise (MNE) Regionalism Regional trade agreements (RTAs) Strategic alliance Transfer pricing Transformationalism Globalisation versus internationalisation 39 Introduction Businesses operate in a global context: even if they do not trade directly with other countries, they might be affected by a domestic shortage of skilled labour or may be subject to developments on the global financial markets. There is a difference between globalisation and internationalisation in the business...
Words: 7538 - Pages: 31
...Introduction……………………………………………………………………. 4 1.1 Problem Statement…………………………………………………………………... 4 1.2 Objectives of Report……………………………………………………………….… 5 1.3 Overview of Report……………………………………………………………….….. 7 2. Background………………………………………………………………….… 9 2.1 Angola & China Country Snapshots and the background trading relationship………………………………………………………………………….… 9 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.2.1 2.2.2 2.2.3 Angola – A Country Snapshot………………………………………………………….…. China – A Country Snapshot……………………………………………………………… Angola’s trade profile………………………………………………………………………. Angola’s trade profile with China…………………………………………………………. Angola’s other trade partners……………………………………………………………… Who are the gainers and losers from Angola’s increasing merchandise trade flows?. The data summary………………………………………………………………………….. 9 12 13 15 19 22 24 2.2 The Trade Policy Background……………………………………………………… 24 The evolution of Angola’s trade policy regime and trade policy……………………….. 24 The evolution of China’s trade policy regime and trade policy………………………… 27 Bilateral and other trade agreements between Angola and China……………………. 29 2.3 Institutional and Policy...
Words: 27003 - Pages: 109
...Arctic Ocean to the North, the Pacific Ocean to the West and the Indian Ocean to the South. The highest point in the World is Mount Everest with a height of 8,848 meters. This mountain is situated in the Tibetan region of the Himalayas that is situated in this gigantic continent. Other Asia facts includes the facts about Asian rivers. As, the rivers are considered to be the most needed natural phenomenon on earth and are immensely important geographically, biologically, historically and culturally. So, the 3rd longest river in the world; river Yangtze (6,211 km) is in Asia and flows through China. Desert is an area or landscape which gets least precipitation thus providing unfavorable conditions for the growth of plants and the survival of life. The largest desert in Asia is the Gobi desert measuring 281,800 km square. Climate and weather are important factors in tourist's decision making and influence the successful operation of tourism. Climate of Asia largely depends on its location and physical geography. This continent comprises of 53 countries including Russia and Turkey which lie both in Asia and Europe. Other major economically developed countries of Asia include Japan, China and India that are currently known as the engines of the world's economic growth. As oil and petroleum play a significant role in the economic uplift of any country. The major oil and petroleum producing countries like Saudi Arabia, Kuwait, Qatar and Iraq are also located in...
Words: 9432 - Pages: 38
...U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2011 NON-EQUITY MODES OF INTERNATIONAL PRODUCTION AND DEVELOPMENT U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2011 NON-EQUITY MODES OF INTERNATIONAL PRODUCTION AND DEVELOPMENT New York and Geneva, 2011 ii World Investment Report 2011: Non-Equity Modes of International Production and Development NOTE The Division on Investment and Enterprise of UNCTAD is a global centre of excellence, dealing with issues related to investment and enterprise development in the United Nations System. It builds on three and a half decades of experience and international expertise in research and policy analysis, intergovernmental consensus-building, and provides technical assistance to developing countries. The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage...
Words: 156270 - Pages: 626
...RETHINKING THE (EUROPEAN) FOUNDATIONS OF SUB-SAHARAN AFRICAN REGIONAL ECONOMIC INTEGRATION: A POLITICAL ECONOMY ESSAY by Peter Draper Research area: African Economic Outlook September 2010 Working Paper No. 293 Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10 2 © OECD 2010 DEVELOPMENT CENTRE WORKING PAPERS This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2 rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS DOCUMENT ARE THE SOLE RESPONSIBILITY OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES ©OECD (2010) Applications for permission to reproduce or translate all or part of this document should be sent to rights@oecd.org CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAIL Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre...
Words: 16032 - Pages: 65
...1.5 FIGURE 1.6 FIGURE 1.7 FIGURE B1.3.1 FIGURE B1.3.2 FIGURE 1.8 FIGURE 1.9 FIGURE 1.10 FIGURE 1.11 FIGURE 1.12 FIGURE 1.13 FIGURE B1.4.1 FIGURE B1.4.2 FIGURE B1.8.1 FIGURE B1.8.2 FIGURE 1.14 FIGURE 1.15 FIGURE 1.16 FIGURE 1.17 FIGURE 1.18 FIGURE 1.19 FIGURE 1.20 FIGURE 1.21 FIGURE 1.22 FIGURE 1.23 FIGURE 1.24 FIGURE 1.25 FIGURE B1.9.1 Despite some Q1 weakening, business sentiment in Europe and the US signals further expansion Economic activity is strengthening from very weak levels in Europe Inflation and unemployment trends are on divergent paths across major economies Net capital flows and net financial exposures (width of arrows proportional to amounts in billions of U.S. dollars) Developing country activity is strengthening but at a modest pace Manufacturing surveys are pointing to continued expansion in East Asia and South Asia Output gaps remain small in most developing regions Capital flows have recovered strongly after a steep fall in February Currency depreciations were more modest during the winter turmoil among countries that reduced external imbalances Distribution of changes in developing country bilateral exchange rates with the US$ Most developing country equity markets have fully recouped losses since mid-2013 Borrowing costs have fallen since the start of the year for developing countries Metal prices have extended their falls while food prices have turned up Commodity exporters have suffered significant terms of trade losses over the past year If 2014 is...
Words: 103843 - Pages: 416
...Assignment Cover Sheet Programme Module Name Assignment Number First Names/Surname Student Number Date Submitted Email Postal Address Bachelor of Commerce Year 3 International Business 1 Tamara Kumwenda Nyirenda BCOM1131258 02/24/2015 tamapk@yahoo.com, bcom1131258@myregent.ac.za Private Bag E891, Post Box 524, Manda Hill Lusaka, Zambia Contact Numbers Alternate Contact Name Relationship Contact Number +260950791952, +260966593043 Mercy Blessings Sister +260966593043 I hereby confirm that the assignment submitted herein is my own original Work. Signature of Student 1 Date: 2/04/2015 Question 1.1.1 According to John Gray in his book, False Dawn: The Delusions of Global Capitalism, 1998: p. 2, he defines Globalization the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. The following are the major points he quoted Technology Technological innovation, diffusion, and adaptation profoundly shape firm capabilities, production patterns, and the quantity and quality of employment in a sector. During these discussions, participants distinguished between technological change, a force wholly exogenous to firms and partially exogenous to nations, and technological...
Words: 3110 - Pages: 13
................................................................................................................................... 3 Other interests .................................................................................................................................... 3 China vs. the West ............................................................................................................................... 3 Chinese emigration and its impact ...................................................................................................... 4 Africa’s relation with China ................................................................................................................. 5 The West’s reaction............................................................................................................................. 7 Conclusion ............................................................................................................................................... 8 Introduction Over the last 17 years, Chinese relationships with Africa have intensified drastically. While in the beginning those relationships had been established mainly on an elite leadership level, they...
Words: 4495 - Pages: 18
...economic market. It has been replacing many western states as the top trading and investment partner in many African states, and for decades it has been one of Africa’s best friends, helping in the decolonization process and building key infrastructure projects on the continent. China has been providing many African governments with cheap loans in exchange for securing their means of accumulating natural resources based on the principle of non-intervention and respect for sovereignty, which gives no strings attached. For more than a decade, diplomatic relations between China and South Africa have been marked a great growing relationship between both states. From a period of no official ties to limited interaction between the South African and Chinese Governments, the relationship has subsequently developed to become one of the closest between African and Asian states. Growing economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over three years for infrastructure, agriculture and manufacturing. If the funds are stay the way they...
Words: 8475 - Pages: 34
...copper is sold to copper product manufacturers and copper traders in Europe, North America, South America and Asia (BarrickResponsibilty, 2013). Barrick’s Macroenviroment According to Kotler et al. (2011) a company and all of the other actors operate in a larger macroenviroment of forces that shape opportunities and pose threats to a company such as Barrick. Jobber and Ellis-Chadwick (2013) further imply that it is these actors and forces that affect the mining company’s capability to operate effectively in providing products and services to its customers. Its external environment is characterized by elements that do not have an immediate impact on its performance albeit their impact being felt over the long term. There are those that can influence the company marketing activities without management being able to control them hence the need to continuously monitor them or risk going out of business (Wilson, 2006). The framework that best discusses these elements is the PESTLE Analysis as it provides the strategic planning and environmental analysis that can be useful for Barrick to improve performance and ensure its long term existence as a going concern (Sanderson and Luffman, 2007). Note that though the acronym PESTLE can infer to the order the analysis is conducted, it is important for Barrick to identify which variables are most important for an opportunity and threat analysis. Political, Legal and Economical Though Political, Legal and Economic factors are autonomous discussed...
Words: 3030 - Pages: 13
