Additionally China is developed and has a he population. These would all serve to provide market for the product. The report also recommends that supplier locations be made when examinimg suitable places to invest.
Foreign direct investments may be defined as investments that are usually one in a different economy from the investor's and are normally long term. Foreign Direct Investments (FDI) will only be acknowledged as such if the mother company has considerable control over the operations of the foreign company. The UN defined 'considerable control' as the possession of ten percent of the company's shares. They must have the ability to vote and affect decisions within that company.1
Around thirty years ago, foreign direct investment was left to the United States mostly. This was because they had not participated in the Second World War. Consequently, they had some spare resources over and above those ones available to other countries of the world. The dominated this position until the eighties. Some Asian countries began emerging and by the nineteen nineties, China was recognized as one of the not influential lucrative markets for foreign direct investments. India is also another emerging economy and is also considered as one of the most lucrative countries to invest in. A survey conducted by Kearney in 2005 found that China was the best destination for foreign direct investment. The second nation was India and The US came in at a distant third.
The statistics also testify to these findings. In the year 2006, China's FDI surmounted to a whooping 18.5 billion dollars and this was an increase of almost six percent. In relation to that, China authorized about twelve thousand seven hundred new companies to be created in the country. Additionally, there were about eight hundred and thirty seven million dollars that were put invested in China by American investors. This goes to show that the environment in China and India is quite favorable for investment. 2
2.0 Description of an imaginary sports manufacturing company
Sports manufacturing companies have numerous ranges of products which they can produce. Some of these include tennis rackets, rugby balls, soccer balls, cricket equipment, bowling balls and many others. However, for purposes of this report, there will be more emphasis on the manufacture of bowling balls. Bowling balls come in different varieties. They are usually differentiated by the sort of materials that are used to make them. Some may be made out of polyester while others may be made of other chemical elements such as Urethane. These varieties could be use as product segments by the imaginary company.
The products must also be superior to the rest; quality assurance. Bowling ball manufacture requires consistent and creative use of technology in the production process. There are always new methods of production that are entering the market on a daily basis. Consequently, there is a need to ensure that one's company is well informed about these production processes and that they can implement them a soon a possible. Superior bowling balls are normally maintained by creative engineers. Therefore the imaginary company is characterized by a solid and reliable research and development team. 3
The imaginary company also has to make sure that it lays produce products that are consistent in nature. This means that