Select a country, and discuss how the political,economic and cultural issues may affect the attractiveness of those countries.

China

Ask the ordinary businessperson on the street what is their impression of China , and two answers emerge . The first presents China as a vast and largely untapped potential market for Western goods , the `1 billion new customers ' approach which sees China as either a mecca or a minefield depending on one 's attitude to the associated risks and obstacles (Barro 1995 . The second sees China as a vast workshop , turning out low-cost consumer goods for both domestic consumption and export . China is the largest developing country in the world . The country

has vast territories and abundant natural and human resources . The country has huge domestic markets of great potential . Through trade and economic cooperation , China can achieve resource complementarity and market sharing . Combining capital , technology , and management expertise with China 's low-cost labour and huge domestic market will bring enormous opportunities of common interest to other countries . The expansion of the Chinese economy is not a phenomenon that affects China alone , or even East Asia alone . All of us are touched by this growth , and will be even more affected by it in the future . If we wait for this phenomenon to reach its full form before discussing it , it may be too late and great opportunities will have slipped away . It is time to start thinking about the presence and impact of Chinese-based international and multinational businesses , even if the practical outcome may be long deferred . This will discuss how the political , economic and cultural issues may affect the attractiveness of China

The determinants of FDI for market-seeking investors are mainly related to market attractiveness , trade barriers , investment risks and the host country 's attitude to provide foreign investors with positive conditions for business activities . Market-seeking MNEs are attracted by the market potential (size and growth , the costs of market access (entry /participation , the government 's control over supply , pricing and distribution , etc . Since European MNEs in China are strongly oriented towards R D intensive industries , intellectual property protection may also have a substantial impact on the entry path and on the type of resources committed by these firms . As trade barriers are often associated with other entry conditions - such as the allowed degree of foreign ownership , the sectoral and geographic location requirements or incentives - they equally influence the investment decisions by MNEs

The economic size of the Chinese market has significantly expanded since the end of the 1970s . The 1998 , which brought GDP at a per capita level at US 776 . The average annual growth rate of China 's GDP reached 9 .8 per cent between 1977 and 1987 and 10 .3 per cent during the period 1988-1998 . The existing market size and its expected expansion are undoubtedly among the driving forces of the enormous FDI flows into China during the last decade (Chen 2001 .The structure of the Chinese economy has changed tremendously . The proportion of the industrial and service sectors in the GDP increased respectively , from 47 and 23 per cent in 1977 to...