In China, cooperative joint venture companies, equity joint venture companies, wholly foreign-owned enterprises are the dominant types of FDI in China being absorbed into China. However, this has not always been the case; at the onset of the reform period, the joint ventures were the only entry FDI forms that were allowed in China, save for the SEZs. This was partly due to China’s ideology and also because China preferred it as the better suited FDI type for tapping into advanced technologies. However, in 1986 onwards, China gave the green light for wholly foreign-owned enterprises to be established in areas that were outside the Special Economic Zones. As a result other FDI forms picked up and the cooperative and equity joint ventures advanced to become the most dominant forms of FDI.
A common example of foreign direct investment is when a foreign company comes into a country to invest directly to build or buy a factory. (Jun & Sight, 1996) First, China has immense development in relevant infrastructure to attract inward foreign direct investment. It is the fact that the availability of physical infrastructure great influences the decision of investment especially in a foreign land. Company will have more advantage to invest
In their second attempt in 1988 , PepsiCo made an offer which is very impressive . RE-ENTRY OF COCA COLA They promised to create jobs for around 50,000, making 75% of the total investment in the food and agro processing, and bringing advanced technology and 50% of the total production for export.
In fact, governments will regularly present motivators to organisations as form of exclusions, sponsorships and duties to draw in interest in these nations. This FDI have its own benefits and disadvantage for the developing nation (Cavusgil, Knight, et al, 2014). Benefits of FDI in Developing Nation Financial growth in developing nation Through FDI developing nation can encourage economic development that is required by the country through making more favorable situation for its people as well as give benefits to industries within country (Kinda, 2010). Trouble-Free Global Trade Normally, a nation has its own import levy, and due to this trading is difficult. Likewise, there are businesses that commonly require their vicinity in global markets and to guarantee deals targets are met entirely (Kok, R. and Acikgoz Ersoy, 2009).
The automobile industry is one the aspects which becomes major factor in chines economy. Chinese car manufacturing is considered quit a Modern industry. It was started in 1980s by joining Chinese labor with the foreign companies to provide them with experience with car manufacturing. The first company enter China was Volkswagen in 1984 with production base in Shanghai. Volkswagen Take advantage of inexpensive labor and China established a new and profitable industry.
Coca-Cola Corporation is a transnational company founded and based in the Great Britain. It is regarded as the leading producer and distributor of nonalcoholic beverages. It is a Private Limited Company whereby all operations are determined by the board of directors. The corporation is segmented into two companies: Coca-Cola Great Britain (CCGB), which is solely owned and governed by of The Coca-Cola Company (TCCC) and Coca-Cola Corporation Ltd (CCE). Together these establishments form The Coca-Cola Organization.
Coca-Cola works closely with its bottlers around the world on procurement and commercializing new products and new packaging technologies. Coca Cola Company can be considered as a franchise system. The bottlers are primarily local. So the effectiveness of the company depends on the effectiveness of the relationships between the bottlers and the companies brands. To manage franchise relationships, the company has to maintain a geographic orientation.
It was first offered as a fountain beverage mixing Coca cola with carbonated water. The company employs 130,600 employees worldwide. Coca cola is most well-known for its soft drink, coke. Since its existence, it has used extensive and diverse advertisements to increase its market share; this has led it to become
To propose policies, which could be implemented by the government to attract more FDI. 1.5 Significance of the Study Given the immense benefits that the country can get from FDI inflows, this study aimed to investigate the motives of foreign direct investment, mainly in Tanzania because in this century, FDI is increasingly becoming an important economic and development tool globally and many poor countries, including Tanzania are trying much to set attractive environment to attract more FDIs in order to receive potential positive impacts that accompany such investment schemes. Moreover, FDI is the fueling element for any developing nation in terms of Investment and Finance portfolios. Every country for their growth would require available funds and investment to flow into the country. Since FDI is becoming an important tool for inflow of investment for a country, therefore, it is better to identify the potential economic sectors that can lead to rapid economic transformation and stability by directing the reasonable and adequate amount of investment funds especially that comes in the form of
PepsiCo growth in India has been guided by its global vision of “Performance with Purpose”. This means that while businesses maximize shareholder value, they have a responsibility to all the stakeholders, including the communities in which they operate, the consumers they serve and the environment whose resources they use. Large investor and one of the largest food & beverage businesses in India: One of the largest US multinational investors in the country, PepsiCo has been consistently investing in India and has built an expansive beverage and snack food business supported by 38 beverage plants and 3 food plants. PepsiCo and its partners recently announced an additional targeted investment of Rs. 33,000 Crore in India by 2020 in the areas of product innovation, increasing manufacturing capacity, ramping up market infrastructure, strengthening supply chain and expanding company’s agriculture programme.