Trade and multinational enterprises - Coursework Example

As at 2003, China had the third largest growth in the in FDI. There are clear indications that foreign direct investments are increasing steadily. This aspect is not surprising, as it is well known that the market size and opportunities that are available in China are favoring this growth. Again, the aspect of the open market policies that are followed by China in the course of the last two decades and the unending efforts (Adams, 2011). The efforts have lured more FDI has led to the increase in the FDI growth especially the Germany-based companies that accounts for the largest percentage of the foreign companies (Huang and Tang, 2011).

This idea has resulted in an increase in the interest of many manufacturing companies to invest in China. Much of the China’s economic development depends on the policy making and extensive continuous FDI that facilitates and inward investment. Moreover, foreign development and investment of the manufacturing sector is critical in establishing the superstructure and infrastructure in the modern market policy. China has been the most attractive destinations for investment for many global players today.

The reason behind for this trend is that the manufacturing industry in China forms one of the crucial investment avenues in the China’s economy and has a significant contribution to the total employment and the GDP (Adams, 2011). The other less important fact is that the country has relatively saturated markets in United States, Europe, and Japan who push for the big manufacturing other manufacturers to elsewhere and the China becomes an option as a prime destination for emerging industrialization.

In 2009, China was the largest manufacturing country across the globe. The growth potential in the manufacturing industry in China in yet to be further developed more in many years to come. The likely trend is that the global manufacturers are going to shift their focus to the China markets