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Article Critique
Paper Critiqued: -
Yigang, Pan (2003)“The Inflow of foreign direct investment to China: The impact of country – specific factors”, Journal of Business Research 56, 829 – 833.
Submitted By: - Carl Pallas
Submitted to: - Mark Bayly
Submission Date: - 10 November 2003
Student Number: - 03272141
It is accepted that many factors that suggest foreign companies invest in foreign markets as a source of growth for their companies. Such factors may suggest that companies are trying to gain first mover advantage, follow the customers or try to create stability for the company by investing in foreign markets. ... For the purpose of this case the country in question is China. Looking at the factors in turn, Pan relates to such areas as cost of borrowing, perceived closeness, risk conditions etc as factors which influence a companies decision to invest in a particular country. While international firms may transfer knowledge to a source country and provide jobs and education, in many countries where a high degree of risk is associated, the host country will have the majority of control in order to influence and change and even in some cases reduce the risk. Therefore it is a valid statement that assurance will be sought from domestic (host) companies for FDI in their country. ...
Pan explores the issues of FDI in China and bases a survey relating to the impact of country specific factors.
Approximate Word count = 1047
Approximate Pages = 4.2
(250 words per page double spaced)
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