Nhit Vong

Scholar: Nhit Vong-Hernandez

Nhit Vong-Hernandez

Major: Business

Faculty Mentor: Dr. Mike Reed

Research Topic: "The Inflows of Foreign Direct Investment in China"

Abstract: There is a qualitative research analyzing secondary data. The purpose of this paper is to examine the inflows of foreign direct investment (FDI) in China and an attempt to answer three questions: Is there a shift in the inflows of FDI into China? What incentives does China offer to its foreign direct investors? And who benefits and loses from China's inflows of FDI? In the first findings, my research suggested four changes took place in the inflows of FDI: China's traditional FDI suppliers have shifted since 1979. The FDI types have also changed from Equity Joint Venture and Contractual Joint Venture to Wholly Foreign Owned Enterprises, and that multinational corporations also began their investments into capital-intensive activities. The second findings suggested that China provides many incentives to foreign investors: High GDP growth rate, large pool of skilled labor, large untapped market, low wages, and undeveloped industries that allow for potential profit. The last findings indicated that Chinese consumers, workers, and foreign invested enterprises benefit from the abundant inflows of FDI at the potential expense of its neighboring countries.

Graduated With Baccalaureate Degree: Spring 2005