Investment Regulations

Many governments, especially in industrialized and developed nations, pay very close attention to foreign direct investment because the investment flows into and out of their economies can and does have a significant impact.

Countries would participate in foreign direct investments because it helps in the economic development of the country where the investment is being made. They also engage in FDI to reduce production costs.

The following are among the factors we assess in conducting your business market and competition analysis:

Threshold for Foreign Investment Review Board screening of Chinese investment in”non-sensitive sectors” (ie. Excludes agriculture, media, telecoms and defence) rises from $252 million to $1,094 million

In theory, the liberalization of FDI not only should benefit foreign investors, but also should help domestic economies share in the wealth derived from foreign investment. FDI, as a means of generating domestic revenue, may also serve as an effective means by which to redeploy those revenues into a nation's economic, social, and political infrastructures. "^^ Insofar as states restrict FDI in protectecl sectors, they may encourage it in less protected sectors.

One reason for the concern is the current doctrine of immunity, why this is of concern. In the world of international investment, regulations have not always been equal and perhaps in this current moment, it remains varied, at

I found this article "Foreign direct investment: Companies rush in with the cash" on the financial times website (www.FT.com) published December 11, 2002 written by John Thornhill. The reason for choosing this article is my personal interest in the Chinese economy and its attractiveness to the foreign investors. Apart from the foreign direct investment this topic has also helped me in understanding the impact of Chinese economy on the global market.

A lot of American companies have invested large amounts of money in foreign countries in order to obtain lands, natural resources, and cheap labor. With these large sums of money large corporations have indirectly gained a lot of influence in the economy of other countries. Large corporations make a lot of money investing in foreign countries but they also bring jobs and capital to these countries that so desperately need them.

The process in which organizations determine what they will obtain in exchange for their products is called pricing. Some significant factors for pricing include Market conditions, competition, market place, cost of production and product quality.

In recent years, the investment scales of foreign business are increasing stably. In 2001, the foreign direct investment was 46.8 billion dollars. In 2005, it has arrived at 85.5 billion dollars. At the same time, the form and field has changed diversification. With the China economy high speed developing and enlarging the industry field, the foreign investment will related to communication equipment, computer, bank service, insurance service, etc. so it will also increase for a long time.

The Foreign Direct Investment is stimulated by diverse macroeconomic factors such as the GDP, GDP per capita and also by the political stability of a country. The US is the country, which receives the more FDI in the world; even tough some other countries recently have increased their FDI considerably in term of growth. The overall quality of the infrastructure in the US

After the Second World War, the west committed themselves in removing barriers to free flow of goods, services and capital among other nations. In addition to removal of trade barriers, many countries continues to make efforts in removing restrictions on foreign direct investment. Evidence has shown that foreign direct investment plays a huge role in the global economy as firms increase their cross-border investments. Restriction on trade barriers has made globalization of markets and production a possibility. Technological advancement has made these changes a reality.

Securities regulations began in 1933 as a reaction to securities market violations. Securities regulations are a balance of investor and issuer interests. Regulations have typically been enacted in reaction to a violation that affects many, including issuers, investors, and the public. These regulations are not only created in reaction to violations, but the legislature also attempts to take a bigger step in prevention of the same violation reoccurring, as well as preventing a violation that has yet to occur. In other words, securities regulations have always been on a mission to stay one step ahead of securities violations from both issuers and investors. Regulations tend to tighten the rules to ensure investors and issuers do not have

Once the analysis has been evaluated, there have some key factors that used for marketing planning.

One of the primary benefits of foreign direct investment is that it helps the developing country. When a large corporation pours millions or billions of dollars into building part of its business in that country, it can significantly stimulate the local economy. This helps other businesses in the surrounding