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dy monetary policy which will try to accelerates the adjustment of economic structure in Chinese economy. From this aspect further expansion is possible which will open outside world and will run actively and steadily to promote the reforms which will be in favor of China’s situation as well as its legislation of market economy, it will boost the overall quality and benefit of economy to run smoothly, which will maintain a strong bond with home and host country with its individual growth.

 

2. With stable political situation, Chinese economy has encouraged FDI as a part of its main entry policy. For certain period of time, the government itself was taking part to consider foreign direct investment in China which resulting made continuous efforts in improving or growing FDI investment. It was also protecting legal rights and interest of foreign investors.

 

3. After having FDI in China, foreign firms were attracted to start its business in order to earn like the foreign investors. Even some of the firms who invested experienced success in China. Since last 20 years of China’s restructuring and strengthens of foreign investors in investing in Chinese Economy increase confidence of every individual to make first choice for every firms, MNE’s or joint ventures to work in China or start Business in China.

 

4. Broad Market Potential: As now we all have an idea that China has got highest population with highest growth rate like developed country. The economy is fast growing, and domestic market of its services and products are massive. This is all because of China’s consistent political environment; low labor cost with high quality of work, whole range of industries, and return on investment is good and so on. In a way China exhibits strengthen and charismatic attraction to an number of foreign firms and enterprises or MNE’s.

 

Motivation and obstacles for MNE’s to invest in the China:

 

Market size and growth

 

MNE’s need more space to wide-spread their rapid growth and they have comfortable market environment in China. E.g. Tesco

 

Cheap labor cost

 

As China is highly populated country and in this country people are ready to work at any cost, the concerned to earn money for their normal standard of living.

 

Exchange rate

 

The huge difference is currency rate. For example, if US wants to start a business than it will double profitable from the budgeted cost for starting a new business, as they can export- or can get each and every raw materials from China at cheaper rates.本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。