The Growing Investment Opportunities and Investment Setbacks in China

By

ACKNOWLEDGEMENT

Iwould take this opening to thank my study supervisor, family and associates for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and last name here], declare that the contents of this dissertation/thesis comprise my own unaided work, and that the dissertation/thesis has not previously been submitted for learned written test in the direction of any qualification. Furthermore, it represents my own attitudes and not inevitably those of the University.

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ABSTRACT

In this study we try to explore the concept of “growing investment opportunities” in a holistic context. The main focus of the research is on “investment setbacks” and its relation with “growing investment opportunities in China”.

Table of Contents

CHAPTER ONE: BACKGROUND AND INTRODUCTIONVII

AIMS AND OBJECTIVESXII

RESEARCH QUESTIONSXII

RESEARCH OBJECTIVESXII

CHAPTER TWO: LITERATURE REVIEWXIII

CHAPTER THREE: RESEARCH METHODOLOGYXXXI

Research Perspectivexxxi

Sample and Dataxxxi

Dependent Variablexxxiii

Independent Variablesxxxiii

Control Variablesxxxv

Statistical Modelxxxvii

Limitationsxxxviii

CHAPTER FOUR: RESULTS AND DISCUSSIONXXXIX

CHAPTER FIVE: CONCLUSIONXLVIII

Tangible Resourcesxlix

Intangible Resourcesl

RECOMMENDATIONSliv

REFERENCESLVIII

BIBLIOGRAPHYLX

APPENDICESLXVIII

CHAPTER ONE: BACKGROUND AND INTRODUCTION

China is one of the fastest upcoming economies in today's world economy. It has showed a booming economical success over the last ten years which is a ripe opportunity for foreign investors. Its economy represents all the key features of a successful economy and continues to promise an on growing success. The Chinese economy now ranks the third largest economy in the world which accounts for about 7.5% of the world's total economic activities. This represents a great threat to the U.S and Japanese economies which are the current leaders and an attraction to its private investing sectors. (Money Morning 2010-420). China has over the years grown in its economic sectors such as heavy technological industrialisation and more engagement in international trade which has since then appreciated its currency value (RMB). The Chinese economic reformation inducted of collective agricultural phasing out while it stretched out into the development of fiscal decentralisation, flexible banking coordination, growth of stock markets and development in foreign trade and investment. Annual forex investments rose to almost $108 billion in 2008 and while provided more support for its state owned enterprises in order to ensure more economic security.

The growing investment opportunities in china are vastly attractive as the source of labour is largely intensive, the presence of large market as its represents one of the world's leading populations and the technology to produce in various industries as well. Due to these factors, a profit making opportunity and a shorter payback investment period is attracting investors to look into China. China's FDI'S (Foreign Direct Investments) its self has raised by 7.7% to which is about $23.44 billion over the first quarter of this year (2010) according Ma Xiuhong the county's vice minister of commerce. (Zhang Xiang 2010-414).

Choosing the most apt mode of application overseas is one of the most applicable strategic decisions that a firm must adopt throughout its internationalisation process. In recent years, many research studies on this topic have focused on China, a country which is becoming a basic reference for the global environment ...