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Introduction Economists have supported foreign direct investment (FDI) arguing that it is the best form of capital creation in the long run. The economists have supported their argument based on the fact that foreign direct investments are best because of development of technology brought in by foreigners.
Countries globally are developing by encouraging foreign direct investments (FDI). They are doing this in order to increase their economic strength and move forward economically. Emerging markets have developed in various countries especially developing countries. Emerging markets attract FDI based on the mode of the economy in terms of development, political and market share. This paper explains foreign direct investment (FDI) in emerging markets and focuses in China as one of the emerging markets encouraging FDI. Justification of the Topic Foreign direct investment (FDI) in emerging markets is chosen as the topic of study in this article. FDI relates to an investment done by a firm in a foreign country. The foreign firm does the investment for creation of commodities. FDI is encouraged by the availability of factors of production, markets share and flexibility of economy. Foreign direct investment (FDI) is taken to by the big firms to the developing countries mostly the emerging economies. This is seen as a change from the previous act whereby most firms in developing countries were investing in their own countries. The rise of foreign direct investments on emerging markets has been increasing since 1980. The same factors noted above increases the rate of FDI in emerging markets. ...
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