Foreign Direct Investment - China & India

Table of content

I. Executive Summary……………………………………………………………….5 II. FDI Defined…......………………………..………….……………………………5 III. Factors that influence FDI decisions………………………………………………7

1. FDI and Economic risk……………………………………………………………8 2. FDI and Political risk……………………………………………………………...9 3. FDI and Financial risk…………………………………………………………….9

IV. Recommendation and Country Analyses………………………………………...11 V. India……………………………………………………………………………...12 VI. Republic of China………………………………………………………………..15 VI. Conclusion……………………………………………………………………….18

Table of citations

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I. Executive Summary

An American MNC seeking to set up production and assembly facilities as well as sales and distribution outlets in two countries needs to carefully analyze which economies would be best suited for their foreign expansion needs. Of the four countries to be assessed, we felt that China and India offered