why China and other Asian countries became more attractive designations for investment by the foreign MNCs?
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They consider it as a favourable destination for their investments because it has a large and rapidly expanding market, which was not overly affected by the financial crisis. This country has a strong potential, a wealth of employees and potential partners eager to learn and evolve, the country is a base for low cost production
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In the early 2000s, China overtook the United States as the world's largest recipient of foreign capital. FDI is comprised of capital that an outside investor is willing to place (and risk) within a local region. Conditions in the global capital markets and general economic environment play a role in determining the flow of FDI into China. A thriving global economy, capital markets and business environment create large swaths of investable capital, a portion of which is converted to FDI. Large amounts of investable capital that proportionately overwhelm the number of sound local investment ideascan cause institutional, company and individual investors to invest their wealth in emerging and developing markets.
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