International Business Theories. Outward Foreign Direct Investment Essay

International Business Theories. Outward Foreign pass Investment from chinaware - Essay ExampleIntroduction It is said that no country is an island. The fact behind this saying is made evident in several theories including economic theories. For instance it is out of this realization that several countries and regions of this world ar forming organizations and unions that seek to bridge the borders that hinder the easy flow of investment from one country to the other allowing that investors of other nations have free access to do personal credit line and trade in other countries. A number of such organizations and associations of the world that foster free movement of investment for economic purposes can be mentioned. more or less of these include the Gulf Countries Cooperation, Middle East and North African Organization, European Union and Economic Community of West African States. The freedom for other contradictoryers and international businesses to do business and invest in other countries bring to fore the discussion on foreign investment. Foreign investment comes in different forms, depending on what is involved in the investment. The differences in investment packages has over the years resulted in economic terms such as foreign indirect investment, outward foreign direct investment and inward foreign direct investment. Today, economic scholars seem more comfortable, discussing the phenomenon of flow of investment from one country to another as and foreign direct investment. ... To this end, Graham and Spaulding (2005) explain that the definition has been broadened to include the acquisition of a lasting management interest in a company or go-ahead outside the investing firms home country. There is no denying the fact that China and India remain some of the worlds largest attracters of foreign direct investment specifically outward foreign direct investment. This paper is therefore dedicated to researching into the general trend associated with foreign direct investment from those 2 countries in relation to how international business theories adequately explain the reasons for outwards foreign direct investment in those two countries. Overview of outward Foreign Direct Investment from China By definition, China is one of the most celebrated countries that enjoy a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor (Economic Watch, 2011). Simply put, China enjoys massive foreign direct investment. Without saying the least, recent survey conducted by the linked Nations has proved that investors rank China as the worlds first most important destinations for foreign direct investment over the 2010 to 2012 period (Asia Briefing, 2011). The deductive reasoning of this top spot is that China enjoys and benefits from outward foreign direct investment like no other nation in the world. Indeed the success of China as the top ranked da tes far back as Shaukat and Wei (2005) notes that China is by far the largest recipient, and in 2004 surpassed the USA as host destination. It has consequently