Business Daily Update

Business Daily Update September 21, 2009 Monday RUSSIAN, CHINESE COMPANIES MAY castigate FDI STRATEGIES BYLINE: zhangjw LENGTH: 885 words The last decade was characterized by impressive harvest-tide of outward foreign direct enthronisations carried out by companies from emerge countries, including those of China and Russia, which has led to visible changes in global investment flows. Chinese and Russian companies were given ample opportunities for international refinement in the beginning of this century. The key role in this run belonged to the changes in policies of both countries and to the public support given by their governments to investment foreign. Russian international expansion has been carried out in general by private companies, whereas, in China, under the governments auspices, most large-scale activity has been shown by State-owned enterprises. Europe has become the chief(prenominal) target region of investment for the Russian companies, while the Chinese companies have concentrated on Asia-Pacific. At the same time, the US market has been equally attractive for Russia and China. Growth of Russian and Chinese companies foreign investments started from roughly similar levels; however, the number of Chinese run projects has been growing considerably faster.

2008 became a record year for Chinese companies-investors. According to different estimates, in 2008, Chinese multinationals (MNCs) spent abroad $35 billion to $46 billion on bon ton mergers, whereas for the Russian MNCs it was around $17.45 billion. The impact of the crisis on the expansion of Russian and Chinese companies differed depending not only on the sector, but as well on the strategic model of expansion. The entrance of Russian extractive companies (such as Norilsk Nickel and Rusal) to foreign markets was carried out, primarily, to increase the scale of activity. These companies in especial(a) have been the most severely affected by the crisis. At the same time, a... If you want to get a full essay, mark it on our website: Orderessay

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