M5D1: Future Investment
Foreign direct investment (FDI), which involves the transfer of capital, managerial, and technical assets to a foreign country, has surged in recent years. In this discussion, you will analyze a recent foreign direct investment in China.
Read the section “Changes May Influence Future Investments in China” from your textbook (p. 432). Respond to the following:
Explain the similarities and differences between net present value (NPV), profitability index (PI), and economic value added (EVA).
Although China has been actively campaigning for foreign investment, how do you think having a communist government affects its foreign investment?
How can current risk and political risk be minimized when one is making a foreign direct investment?
Post your primary response. Read any postings already provided by your instructor or fellow students. See the SBT Discussion Rubric for how you will be evaluated for this activity. Remember to read the feedback to your own major postings and reply to it throughout the module.
See the Course Calendar for due dates for posts and responses.
Compose your work using a word processor and save it, as a Plain Text or an .rtf, to your computer. When you’re ready to make your initial posting, please click on the “Create Thread” button and copy/paste the text from your document into the message field. Be sure to check your work and correct any spelling or grammatical errors before you post it.
Review the SBT Discussion Rubric located in the “Start Here” section of the course for more information on grading criteria.