oussama94
05-28-2017, 23:26
Physical flows are important to watch, as they represent the underlying
changes in actual physical investment activity. These flows shift in
response to changes in each country’s financial health and growth opportunities.
Changes in local laws that encourage foreign investment also serve
to promote physical flows. For example, due to China’s entry into the WorldTrade Organization (WTO), its foreign investment laws have been relaxed.
As a result of its cheap labor and attractive revenue opportunities (population
of over 1 billion), corporations globally have flooded China with investments.
From an ** perspective, in order to fund investments in China,
foreign corporations need to sell their local currency and buy Chinese renminbi
(RMB).
changes in actual physical investment activity. These flows shift in
response to changes in each country’s financial health and growth opportunities.
Changes in local laws that encourage foreign investment also serve
to promote physical flows. For example, due to China’s entry into the WorldTrade Organization (WTO), its foreign investment laws have been relaxed.
As a result of its cheap labor and attractive revenue opportunities (population
of over 1 billion), corporations globally have flooded China with investments.
From an ** perspective, in order to fund investments in China,
foreign corporations need to sell their local currency and buy Chinese renminbi
(RMB).