Global Economy

Friday 3 December 2010

A2: Foreign Direct Investment to avoid tariffs

Here is a terrific example of FDI from China into the USA to avoid tariffs. The Americans are putting up trade barriers against imports.The production in the USA in a joint-venture with Ansteel means the Chinese firm can enjoy the benefits of good infrastructure and selling in the USA. 1) What is the currency challenge, and 2) what is the business challenge for the Chinese investors? Answers by Friday 10 December, please!

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