Abstract
China and Europe are two big economies in the world, and there is much investment between them. As we know China has been investing almost in all around the world, Chinese investments in Europe have begun in recent years, and have become a symbol of Europe-China relations. According to data by the Rhodium Group, the amount of Chinese FDI in the EU has increased approximately 37 billion Euros in the first half of 2016, comparing with only 1.6 billion Euros in 2010.A big part of Chinese direct investment is mainly concentrated in the major economies in southern Europe or we can call it the BIG 3, as the UK, France and Germany all together. DOI: 10.7176/EJBM/13-6-04 Publication date: March 31 st 2021
Highlights
Www.iiste.org to property and assets. 2.1.2 Theoretical assumption of FDI Hymer, Kindleberger and Caves (1997) have propounded the market imperfections approach
Market imperfection are often caused by goods and factor markets, scale economies, and government imposed regulations, especially tariff and trade barriers that prevent the efficient allocation of resources and distribution of products
Advocates of conventional theories on the one hand explain the power of Chinese firms to compete through country specific advantages (e.g. Rugman & Li, 2007; Nguyen, Okrend & Tang, 2010) or state that the most difference between FDI from developed and emerging economies lies within the weighting of motives (Nicolas & Thomsen, 2008)
Summary
Www.iiste.org to property and assets. 2.1.2 Theoretical assumption of FDI Hymer, Kindleberger and Caves (1997) have propounded the market imperfections approach. Based on the research, it can better provide policy suggestions for the international investment and development of China and Europe.
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