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.
Nations engage in international trade because they benefit from doing so. The gains from trade arise because trade allows countries to specialise their production in a way that allocates all resources to their most productive use. Trade plays an important role in achieving this allocation because it frees each and every country’s residents from having to consume goods in the same time combination in which the domestic economy can produce them. During the past decade, China’s growing presence in Africa has increasingly become a topic for debate in the international system and among economists as well as policy analysts. China’s presence in Africa and its relations with African countries is primarily driven by economic interests and practical
Economical Factors China is seen as one of the most energetic countries in the world when it comes to economic development. The new reforms in 1978 stimulated the Chinese GDP growth from 364 billion RMB to 63.6 trillion RMB within 30 years (chinability.com, 2015). China has persisted to be a primary beneficiary of the world’s destination of Foreign Direct Investment in the latest period. FDI reports 27% of the value added production, 4.1% of national tax revenue, and 58% of foreign trade (usi.edu, 2010). China was facing an economic growth and a huge development, even though the international financial crisis of 2008 left some marks on several aspects of China, above all the export-oriented light industry in southern China (chinapolitik.de, 2009).
According to Kenneth, China was very successful in agricultural aspect and she was more capable in cultivation of land than the European though the livestock per capita of China may not be as high as the European. He also compared the various aspects between Europe and China, which are considered as the advantages for having
Over the past 30 years China has risen from the rubble, it has undergone a social, economic, political and environmental change so quickly that it astonishes the rest of the world. In the blink of an eye, it has become the manufacturing capital of the world. China has proven that it is possible to have a communist-capitalist government system. Although the transformation China has undergone is unbelievable, the country has also run into many problems along the way like overpopulation, environmental issues causing the economic growth is starting to slow down. China has had the largest ongoing migration in history, currently the government is planning to move 250 million people from farms to urban cities (New York Times).
The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention. Without government intervention infant industries will not benefit from low taxes and incentive for exports and will fail to compete in the free trade causing unemployment in the country. Secondly with resource allocation, Chinese government controls the resources based on comparative advantage helping domestic firms to specialize based on cheapest resource available. The availability of the resources increases the output of domestic firms; this will improves the balance of payment of a country because of the increase in value of export compared to the import. Lastly the dynamic mechanism states that growth can be sustained by introduction of new technologies, foreign investments and from imports.
Construction business in China is important, because China need the construction business to improve their economy. According Lovells, H. (2014), some companies did not follow the environmental protection regulation which would be fined and penalties because they always use ‘relationship’ or simply paid for the penalties and fines. Government should be more strict to protect the environment in China. Government should be more alert for the air pollution, and be more attention for their people
The flourishing trade between China and the rest of the world has been accelerating the development of China’s shipbuilding industries. Although the global financial crisis has slowed down the economic growth, it is still believed that the trend of maritime businesses is increasing. China’s shipbuilding industries have been able to develop due to receipt of powerful support from the Chinese government, especially the state-owned enterprises that have adequate funding to carry out their operations, and profit from rather low labor costs compared with many other countries. In the short term, business needs are liable to keep on overwhelming China's shipbuilding industry. The business' late corporate rebuilding, office development, as well as
Sri Lanka need to change this trend from fancy projects that have big price tags. This requires study and that is why we need to question any Government on any infrastructure project, because we finally pay for it. 1. Investment in physical infrastructure that has taken place is valuable for the logistics industry in Sri Lanka, Once the Deputy Minister of State Enterprise Development said that was not sufficient. “To achieve a world-class and efficient logistics system and to compete on a global scale, it is also important to develop the soft infrastructure.
In previous years, the development trend of the Chinese economy provided immense development space for foreign investments. Labor force was at a low cost and the government encouraged foreign investments through the developments of Economic zones. Such framework authorized foreigners to take advantage of Chinese labor, while the income is sufficient. Foreign investors also saw a broad potential as economic growth was escalating. However, the economic growth has grew at a slower pace of 7.3% since 2014 compared to 9.91% in 2008 (Shao, Spring, “China’s Growth Slowest Since Global Crisis, Annual Target at Risk”).