Situation: Australia and New Zealand Banking Group (ANZ) found China and India have a potential investment...

Situation: Australia and New Zealand Banking Group (ANZ) found China and India have a potential investment for ANZ

Explain the key factors that may affect the opportunity of FDI in China and India. This includes Entrepreneurship, Financial system, Corporate debt ratio (financial soundness), etc.

Solutions

Expert Solution

Foreign Direct Investment (FDI) is considered to be the vital component of economic development especially for the developing and underdeveloped countries like India and China. FDI is imperative for the economy as it is a momentum of growth, strengthens domestic capital, generates employment, augments productivity, and encourages more exports through up gradation of technology and many more. Thus, there are many more determinants which lead to increase or decrease in the flows of FDI in any economy.

GDP of the country, gross capital formation, capital infrastructure, external debt, export and import volume are the major factors that significantly influence foreign capital inflow into the two highly populated, fast growing Asian countries India and China.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Situation: Australia and New Zealand Banking Group (ANZ) found China and India have a potential investment...

Situation: Australia and New Zealand Banking Group (ANZ) found China and India have a potential investment for ANZ. Identify what type of FDI is suitable for these two countries to minimizing risks when ANZ invests in China and India (eg. consider a Joint venture or a Wholly-owned subsidiary and include a brief explanation why this type is better than other types, by also considering the corporate behavior, ethical and social responsibility).

The website of Chartered Accountants Australia and New Zealand (CA ANZ) carries many articles on Audit...

The website of Chartered Accountants Australia and New Zealand (CA ANZ) carries many articles on Audit Quality which can be found at the link given below: https://www.charteredaccountantsanz.com/member-services/technical/audit-and-assurance/auditquality Your audit manager has requested your team to consider the concept of “Audit Quality” and how it may impact on the audit of historical financial information. In your own words comment on the concept of Audit quality and as a team conclude as to how important it is or isn’t when you carry...

Should New Zealand introduce incentives for employee contributions to Kiwisaver schemes as is found in Australia?...

Should New Zealand introduce incentives for employee contributions to Kiwisaver schemes as is found in Australia? could you talk more specifically about this topic and you may use some reference as evidence.

The goal for this question is to analysis the economic situation of China with India. Using...

The goal for this question is to analysis the economic situation of China with India. Using FRED prepare three graphs in one of them compare welfare of Indians with Chinese. Second graph compare unemployment rate among youth in India with unemployment rate among youth in China. In the third graph compare the inflation rate in China with inflation rate in India. (for this graph you can choose the data from 1990). You do not need to include data for 2020....

You are a handicraft dealer in Australia and import materials from New Zealand. You have accounts...

You are a handicraft dealer in Australia and import materials from New Zealand. You have accounts payable to your suppliers from New Zealand in New Zealand Dollars. 1.)a.) Explain the exposure risk your company will face if you do not hedge transactions? b.) If you hedge, which hedging method would you use? (Forward Market Hedge, Money Market Hedge,Options Market Hedge,Cross-Hedging Minor Currency Exposure,Hedging Contingent Exposure or Hedging Recurrent Exposure with Swap Contracts) State your reason why?

1- What the New Zealand city economic situation and risks? 2- What the New Zealand city...

1- What the New Zealand city economic situation and risks? 2- What the New Zealand city current economic opportunities, challenges, and risks? 3- Is the New Zealand city represents a good opportunity for the coffee business? And, do you recommend entering or not entering that market?

a. How will you classify the following countries; Australia, China, US, India based on the definitions...

a. How will you classify the following countries; Australia, China, US, India based on the definitions of a small and large open economies and why?

Saturn Petcare Australia and New Zealand is Australia’s largest manufacturer of pet care products. Saturn have...

Saturn Petcare Australia and New Zealand is Australia’s largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their first manufacturing facility in Albury Wodonga in 1966. Since then they have expanded their manufacturing footprint to include other sites in regional Australia and New Zealand including a world-leading manufacturing site opened in Bathurst, NSW in 2015. Saturn Petcare Australia New Zealand manufactures both for the domestic markets as well...

Your client was born in Australia but lived in New Zealand for a long period of...

Your client was born in Australia but lived in New Zealand for a long period of time. He came to New Zealand for a holiday after finishing university, met up with his former spouse and set up home here. He worked as a police officer in New Zealand. Since separating from his spouse, he moved back to Australia in July 2018 and works as a security contractor in Australia. He maintains a bank account in Australia in which his salary...

Your client was born in Australia but lived in New Zealand for a long period of...

Subjects