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Finance & Accounting
Pages 8 (2008 words)
An Analysis of China as a Popular Investment Destination by Fund Managers Name Institution The rapid globalization in the recent decades has led to the interconnection of the world economies. Accordingly, international investments have gained popularity since fund managers are able to look beyond their national borders for investment opportunities…
Consequently, more fund managers from the United Kingdom have made efforts to invest in China since its economic growth rate is significantly higher compared to other countries in the world. It is imperative to note that investment fund managers are driven by the potential rate of return from a given region, and this is the motivating factor for choosing an investment destination. Advantages of Investing in China One of the advantages of investing in China is the magnitude presented in the potential of its market. Foreign ventures and businesses set up investments in order to serve a local market. The market size and growth rate opportunities are some of the key factors in the determination of an investment destination. Essentially, investors target unexploited markets that are of a significant size with potential for growth. Therefore, countries that have large markets and growth potential are viable investment destinations. The Chinese population of over one billion people offers a large market for any industrial products (Malkiel et al., 2010). In fact, the huge population has a great consumption potential that can be harnessed for business gain. In the recent past, the purchasing power of the Chinese population has also increased significantly, scaling up the uptake of goods and services. ...
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