GERMAN FDI IN CHINA

Analysis of Motives and Prospects within the OLI framework: a Case Study of German FDI in China

Analysis of Motives and Prospects within the OLI framework: a Case Study of German FDI in China

Introduction

The given case is about the German FDI in China. In 2003, China, the 3rd largest beneficiary of the Foreign Direct Investment and realized the highest inflows in the same year. Germany is one of the names that invested heavily in China that enhanced its Outflow from €800 million to €7.9 million in 2003 (Chunlai, 2007).

The trade communication amid Germany and China has been steadily increasing. In China there are currently 1500 companies that represent the German investment in China. China has taken Germany as the most important trading partner from Europe and was ranked at six. China realized German Companies as the seventh largest investors and the top most investors from Europe. In 2002, China attracted $ 52.7 billion of foreign investment in 2003 rose to $ 53 billion in 2004, reaching $ 61 billion. In 2005, China for four consecutive years FDI Confidence Index ranked the top position (Bernard & Jensen, 2004, pp. 561-569).

According to the Financial Times reported that, until May 2007, China's foreign direct investment amounted to only $ 73 billion. In developing countries, China is the largest foreign direct investment recipient countries. In the two years 2005 and 2006, seven received billions of dollars in foreign capital inflows (Chunlai, 2007).

Germany, an International direct investment enterprise in China is an investor to control part of the property, is directly involved in the operation and management features to obtain profits for the primary purpose of foreign capital output (Buch et.al, 2006, pp. 2017-2036).

Objectives

The main objectives of the study are to identify the following:

To identify the factor that attracts the German Companies to invest in China.

To analyze the motives and prospects under the OLI framework.

To analyze the reasons and causes of German FDI in China.

To study the Future Prospect and conditions for expanded FDI of Germany.

Literature Review

2.1 Research Methodology

This is a qualitative research and will be the review of the journals, articles and qualified research and qualitative data based on and related to the Analysis of Motives and Prospects within the OLI framework: a Case Study of German FDI in China.

To conduct the study; the systematic and methodical review of textual or visual material will be followed. The study seeks to minimize potential cognitive biases and ensuring the objectivity of its research.

The research's methodology will be based on studying the Motives and Prospects within the OLI framework one by one and to observe them in the defined parameter such as dataset, peer review articles and in former research and studies. The step by step execution of the study will be under the defined parameters and will be in the following sequence:

Description of objectives

Realization of the field of study observations and dataset

Content analysis (spoken, written, observed)

Results Formulations

2.2 Data Case

Data used is the case study of German FDI ...