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Essay / Research Paper Abstract
This 7 page paper considers the move of many Chinese companies into Africa. The paper is written in three parts. The first part discusses the way China is entering Africa, the second part looks at the FDI investment behavior of Chinese firm in Africa and the last part identifies potential advice that can be given to African leaders to increase FDI. The bibliography cites 7 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEchiafrica.rtf
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Unformatted sample text from the term paper:
the last few decades. For example, in 1990 China took only 0.43% of all Sub-Sahara African exports, by 2004 this had increased to 8.96%, China has also seen an
increase in the level of exports, in 1990 1.76% of the imports into Sub Sahara Africa were from China, this increased to 12.26% (Kaplinsky, 2007). This is indicative of the
ties that are being renewed between China and Africa and the way in which there are a number of Chinese firms entering Africa.
There have been investment and moves into Africa by Chinese companies, the moves can be seen as part of the way that China has been developing and a move
that has been more prominent since the country entered the World Trade Organization (WTO) in 2000. The increased level of globalization sees firm seeking to increased sales and profits though
using global markets, both as target markets to sell goods, and in order to gain comparative advantages to constraint costs (Thompson, 2007). While China may be a destination for foreign
direct investment (FDI) by western companies, Chinese companies are seeking to take advantage of the increased commitment and participation of globalization, with many of the trade barriers lifted and restrictions
relaxed, for trade and good going into and coming out of China (Thompson, 2007). With the commitment under the 1997 15th Party Congress that there would be a privatization of
the largest state owned enterprises, which is an ongoing policy and has laid the foundation for Chinese MNCs and their subsequent international expansion, including into Africa, regardless of their
current ownership position (Alden, 2007). The Chinese firms are present in a number of industries, one of the most visible ways
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