The availability of different of resources such as land, labour and the natural resources is always the key to attract more investors. One of the advantages that company will get when they invest in China is availability if all kinds of resources. The most important one is the human resources. China is the largest country in the world in terms of population and so it own rich source of labour in the globe. Besides that companies also get the lower cost of labour force and very rich in energy resources.
Hong Kong is more reliable, makes superior products, and completes the orders much faster than China. Hong Kong is the best choice for the short term, while China is the best for the long term due to much lower labor costs. This is proven by looking at the line configuration and hourly wage between the two
The international flow of resources and especially technological power coupled with financial capacity places the U.S. at an advantage over other producers. On the other hand, the US can only produce more costly labor intensive goods considering it has expensive labor. However, the developing countries or those with more labor will produce more
Many of the countries are focused towards attracting foreign direct investment due to the fact that they believe that use of FDI would provide those benefits in terms of domestic firms. Moreover, foreign direct investment is also considered as the important source of technology particularly for the developing economies. It is noticed that Blonigen et al (2007) regarded FDI as the key engine for economic growth and prosperity because it contributes more to the growth in comparison to the domestic investment. Therefore, based on this, it is evaluated that foreign direct investment is the important concept that must be considered by the economies in order to promote their growth and
Productivity is a variable that permits a nation to maintain high wages, a strong money, and handsome return to investment and with all of them a high level standard of living. Global economy is not a zero-sum game and various countries can expand their richness if they can start improving productivity [World Economic Forum (2005)]. Competitiveness defined as: A set of factors, institutions and policies which establish the level of productivity of a nation and therefore, manage the level of prosperity that can be assessing by an economy [World Economic Forum (2005)]. Productivity is a main driver of the rates of return on investment, which in turn reflects the level of aggregate growth rate of the economy. So, a more competitive economy is the one that is expected to grow more rapidly over the way to long term.
A high net profit margin ratio means DiGi.Com Berhad obtaining lower expenditures or costs involved in executing sales activities. Moreover, refer to figure 2.3, return on asset ratio on 2010 to 2014 shows positive value, except 2012 was slightly lower value with 79.66 per cent. Normally, a higher return on asset ratio means effective management’s decision to generate profit regardless of resources. Besides, return on owner’s equity is show positive value, which means the success of business in generating profit, especially in 2014 with 301.54 per cent. In overall, DiGi.Com Berhad was in stable position of probability ratios and the company was able to generate profits within a specified
Over the past few decades, tourism has experienced the sustained growth and deepening diversification to become one of the fastest growing economic sectors over the world. Nowadays, the business volume of tourism can be said to be equals to or even surpasses the business volume of food products, automobiles or oil exports. Tourism plays an important role in almost every country due to it has a greater impact on the development of country economy. The main benefits of tourism are creating extra money for national income and creating more career opportunities for locals. One of the easiest benefits to determine is the career opportunities that the tourism brings.
Availability of these kind of resources especially minerals, agriculture product and raw material become an important determinant of FDI for host country. Malaysia, on the other hand, a medium-size country, having upper middle income developing economy, although it is largely urbanized but the state continues to develop their cultural sectors actively. This is aided well by its rich natural resources. In addition, Malaysia is in condition where it has a political stability which is highly attractive to foreign investment. Hence, FDI appears to a key driver underlying the strong growth performance experienced by the Malaysian economy.
Over the decades, Singapore's exports composition has evolved from labour-intensive to high value-added products, such as chemicals, electronics and even to biomedical. Singapore is also an important financial center. It is a leading foreign direct investment recipient due to its status of one of the freest, most competitive, most business-friendly economies in the world. Singapore's economic growth is the results of proper macroeconomic policies aimed at maintaining a conducive environment for long-term investment in the economy. Monetary policy Since 1981, monetary policy in Singapore centered on the exchange rate and controlling inflation.
That partnership was thought as an opportunity to grow for that company mentioned. One professor suggests three general advantages of FDI on capital, these are ; 1)company presidents have less risk with the help of free flow of capital around the world. With the different financial instruments, president can distribute the risk. 2) If the money and capital markets become worldwide, that situation increase the quality of capital and money governance and management, gathers more modern regulations. 3) With the integration to international system of capital flowing, country’s governments must have some limit to make bad policies.