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Case
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Reference no. 9-701-061
Published by: Harvard Business Publishing
Originally published in: 2001
Version: 30 June 2003

Abstract

China is one of the most popular investment destinations in the world. Throughout much of the 1990s, China accounted for 50% of foreign direct investment (FDI) going into developing countries and between 1994 and 1997, China was the second largest recipient of FDI in the world, after the United States. The recent agreements between China on the one hand and the United States and the European Union on the other hand over China''s accession into the World Trade Organization (WTO) may increase China''s already impressive FDI inflows significantly. This case examines the drivers of FDI flows into China and the lessons for other developing countries.; To teach students to think about FDI as a competitive process.

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Abstract

China is one of the most popular investment destinations in the world. Throughout much of the 1990s, China accounted for 50% of foreign direct investment (FDI) going into developing countries and between 1994 and 1997, China was the second largest recipient of FDI in the world, after the United States. The recent agreements between China on the one hand and the United States and the European Union on the other hand over China''s accession into the World Trade Organization (WTO) may increase China''s already impressive FDI inflows significantly. This case examines the drivers of FDI flows into China and the lessons for other developing countries.; To teach students to think about FDI as a competitive process.

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