First person point of view in “Raymond’s Run” and “Cathedral” Essay

The authors of â€Å"Raymond’s Run† and â€Å"Cathedral†, both use a first person point of view in their short stories. In â€Å"Raymond’s Run†, by Toni Cade Bambara, the first person point of view shows how the narrator is dealing with the situations around her and maturing in the process. In â€Å"Cathedral†, by Raymond Carver, the reader can see the change in the narrator’s understanding of the blind man through different situations that happens throughout the story. Both authors have similar purposes in mind when they were writing the story, they both wanted to show the growth and transition of the narrators. The use of the first person point of view makes it easier for the readers to see the thoughts and emotions that are being experienced by the narrator, which will give us a better insight into their thinking and actions. In â€Å"Raymond’s Run†, the narrator of the story is Hazel, and the whole story is seen through her eyes. In the beginning of the story, the reader finds out that Hazel looks after her older brother with a mental disorder. She does not mind looking after her brother, and she is also really protective of him because many people like to make fun of him and he also gets himself in trouble. Hazel’s protectiveness of her brother can be seen when Hazel says, â€Å"If anybody has anything to say to Raymond, anything about his big head, they have to come by me†. She is also a very boastful little girl, especially when it comes to her running, she thinks that no one can even come close to her running speed. Her boastfulness can bee seen in the third paragraph when she says, â€Å"There is no track meet that I don’t win the first place medal†. As the story moves along, Hazel bumps into a gang of girls that she does not really like and confronts them. She especially does not like Gretchen because Gretchen is Hazel’s main competitor. Then a transition occurs when Raymond is calling Hazel and â€Å"rattling the fence like a gorilla in a cage†. She realizes that she already has a lot of medals and ribbons, but Raymond has nothing, and also realizes that Raymond is a very fast runner who has the potential to become a winner. So, it does not matter if she wins, loses or ties the race because she can always retire and coach Raymond. Through the first person point of view, the reader can see the personal experiences that Hazel goes through, and how she came to understand that: winning was not everything, she should help others enjoy winning and  she could gain respect for someone through competition. In â€Å"Cathedral†, husband is telling the story from his point of view, which is in first person. The reader can see that in the beginning of the story, the narrator appears to be hostile and irritated because his wife invites her blind friend to stay for the night. The husband does not want the blind man to stay at his house because he does not understand the blind man and the blind man’s relationship with his wife. To alleviate some of his uneasiness, the narrator makes a brainless comment to his wife about taking the blind man bowling. Then, when the blind man comes, he asks the blind man which side of the train was he sitting on. Gradually, as the evening wears on, the narrator begins to relax with the blind man. They start drinking and smoking weed together, eventually the narrator turns on the television. When the show on cathedrals is showing, the narrator tries to describe a cathedral in words to the blind man. When that does not succeed, the blind man asks the narrator to help draw a cathedral. They start by having the blind man hold the narrator’s hand as he draws a cathedral on a paper bag. The blind man tells the narrator to close his eyes and draw. So the narrator complies and closes his eyes and draws, saying, â€Å"So we kept on with it. His fingers rode my fingers as my hand went over the paper. It was like nothing in my life up to now†. The ending reveals to us that the narrator is learning more about himself and human communication than the blind man is learning about cathedrals. Through the first person point of view, the experience of the successful communication between the blind man and the narrator allows the reader to see the transformation that occurs in the narrator. In both of the stories, the authors basically have the same purpose in mind when they are using the first person point of view. From all the events that happened to Hazel in â€Å"Raymond’s Run†, it is clear that the author used the first person point of view to see the change and growth in her thinking. Hazel went from a very anti feminine, competitive and straightforward little girl to a mature, and respectful little girl. In â€Å"Cathedral†, the author uses the husband as the narrator because the author wants us to see how the husband interacts with the blind man and slowly understands him. With the first person point of view, the author generally wants their readers to get  a more personal understanding of the narrator and how they see things. Therefore, in both these stories, the authors’ purpose was to show the changes that occur to the narrators of each story.

Edward Estlin Cummings Essay

Edward Estlin Cummings or E. E. Cummings,as he was popularly called was an American poet, painter, essayist, author, and playwright. His body of work encompasses approximately 2,900 poems, two autobiographical novels, four plays and several essays, as well as numerous drawings and paintings. He is remembered as a preeminent voice of 20th century poetry. One of his major work is the poem â€Å" I thank You God†. The poem by e. e. cummings, titled â€Å"I thank you God for most this amazing†¦ † suggests a way of perception that differs from ordinary vision. We notice first in this poem that the day itself is seen as amazing; the â€Å"spirits of trees† that leap suggest their form; the sky is a â€Å"blue true dream,† and â€Å"everything† is natural, infinite and â€Å"yes†. The speaker is almost breathless; he hardly pauses, having no space even between his semi-colons. We find the poet both dead, then reborn in his communication with the earth and with nature; he is gradually converted into a new realm of awareness. As in the case of any small child, he views the earth’s existence in the language of his newfound cognizance–he is reborn, thus so is the sun and life and love and wings, even the earth itself. All things are new precisely because he is renewed. Next, his senses become the conduits to the metaphysical. By the word â€Å"God† he could mean a personal deity or a pantheist unity unimaginable in essence. The gist of the poem speaks more effectively to the former–glorying in the senses arises from gratitude, which begs a subject. It would be difficult to be grateful to impersonality. Rather, the poem takes on a sacramental meaning; the poet penetrates the world, and the earth itself–as it should–becomes the conduit to unearthly faith. The speaker is finite, a â€Å"human merely being† grasping for the â€Å"unimaginable† infinite, and discovering faith through what is; in other words, through the physicality of the earth surrounding him. Hence, he concludes, â€Å"now the ears of my ears awake and/now the eyes of my eyes are opened,† an allusion to a common motif running through much of the Christian Scriptures. Ecclesiastes, for instance, contains a lament for â€Å"the eye not filled with seeing†; the prophet Isaiah condemns those with â€Å"ears who do not hear† because of hardened hearts. The poet’s enlightenment, interestingly, begins with gratitude and an appreciation for nature, the sun and sky, and this is what leads to life and love and wings, all of which erase doubt. This is an unusual route to enlightenment, and unlike pantheism (which in its many forms begins with a fundamental rejection of nature as illusory and ends with the abdication of the self). Rather, cummings affirms with humility his humanity and all of nature, the â€Å"great happening illimitably earth†. The process he describes thus begins with thanks and revelry in the senses and ends with faith and enlightenment.

Japanese Automobile Manufacturers as Multinationals Essay

Japanese Automobile Manufacturers as Multinationals - Essay Example Strategies created by Japanese experts were used by Toyota and other Japanese automobile manufacturers to achieve the imposing in the markets and the business development. Japanese strategy called KAIZEN is widely famous for using by Toyota and other major producers. According to Funaru this strategy includes continuous improvement and its impact on the product quality’s level (Funaru M. 2010). This strategy is considered to be integrative and cross-functional in meaning it involves all staff in the gradual improvement, management and business activities for increasing company’s productivity, quality of the products and competitiveness of the business. Speaking of Toyota’s product strategy, it’s built on the following: new innovative technologies development, highest quality, discovering of new sources for creativity and focusing on research. Toyota Company is one of the largest automobile manufacturing companies in the world. The designs of the products are quite impressive thereby commanding lots reliance by several customers around the globe. However, it is of crucial significance to note that there are a number of problems that face the Japanese Automobiles in general. Some of these problems may include the issue of globalization and its associated implications, stiff competition, striking a balance between marketing and branding as well as dealing with pressure to attain efficiency and maintain sustainability in the markets and production. These have presented major challenges to a number of automobile industries thereby compromising their competitive advantages over the other world producers.

Japanese Economy Evaluation of Opportunities for Foreign Investors Essay

Japanese Economy Evaluation of Opportunities for Foreign Investors - Essay Example However, in 2005 Japan succeeded in getting itself out from the economic depression cycle it was in. The economy started showing a positive growth reaching 2% in the third quarter of 2005. This resulted in an increase of capital investment, reaching 9.6% in the same quarter. Japan is and will remain one of the largest markets in the world. With 125 million people, well advanced, and an established infrastructure, it offers international businesses a valuable opportunity to establish itself in this economy. Japanese consumers have become more willing to purchase imported products such as food, computers, machinery, medical devices, pharmaceuticals and services. In addition Japanese companies have become more willing to accept foreign investment and cooperate with foreign partners, and as such Japan has never been as accessible to foreign goods and services. The Asia Pacific countries include China, Indonesia, Malaysia, Myanmar, The Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam and Japan. The 'Big Five' economies in the region are Korea, Taiwan, Hong Kong and Singapore and Japan followed by a second group of Thailand, Malaysia and Indonesia. China and Vietnam comprise the next level of economies in the region. The Asian financial crisis was a major event that led many Asian governments to sit upright and pull up their socks. The crisis emerged in July 1997 and stormed the financial markets of Thailand. It spread on to other neighbouring countries until it became a pandemic. The crisis did not seem to touch Japan since it was already on a long 15 year old recession. But at the turn of the century, things have started to look-up. Japan has tuned up its banking systems to the right note and the Asian symphony is just going great. Japan is now leading the way in a new Asian business paradigm. Industrial output in Asia has been growing at a staggering +7.7% every year. This is more twice that of the United States. China is the largest recipient of FDI in the region with over $50

An analysis of the labour market conditions within setting bussiness Essay

An analysis of the labour market conditions within setting bussiness. And a critical reflection on your own internal strengths and weaknesses, as well as the ex - Essay Example Although the features of labour market conditions vary due to market forces, plurastic and regionalistic factors with socio-economic influences, they could be broadly be divided into four main divisions which are as follows: - This market is chiefly constituted of medium and large-scale commercial agricultural activities, including cultivation and distribution of crops. Proprietorship or partnership firms chiefly own them. Most of the workers engaged in the formal rural markets are unskilled and semi-educated and their main activities are in the areas of crops and agricultural produce. This market segment is chiefly indulging in small-scale operations involving self employed persons along with the assistance of unpaid family members. Like formal rural markets, this segment is also characterized by unskilled or semi-skilled labour force who are involved in small-scale activities with low productivity and hence, low level of wages. The main functions in informal rural markets are in the raising of exportable cash crops. This segment consists chiefly of Medium and Large Scale enterprises producing commercial and non-tradable goods using a combination of skilled and semi-skilled workers. They constitute private or state owned enterprises where the wage levels are regulated by the Government and by local state laws. The requirements of Minimum Wages and Allowances and benefits to workmen are also applicable in this segment. Since this market segment is in the regulated area, the workers and staff are protected by the Trade Labour Unions, who play an important role in labour matters, and trade unionism activities are also present in this segment This segment comprises of self-employed professionals in the urbanized sector and represents privately owned enterprises. They are mainly dealing with manufacturing, trading and distribution of non-tradable items and this segment is, more often than not, in the unregulated sector. The wages and job security in these

Case Report on a Supreme Court decision that has been important in Essay

Case Report on a Supreme Court decision that has been important in shaping the interpritation of the Constitution - Essay Example This and other court appointments by the outgoing administration caused considerable consternation among the victorious Democratic-Republicans. During his long tenure, the decisions of the Marshall Court laid down the groundwork for an independent judiciary, the Court’s role as final arbiter of the Constitution, and practical guidelines for the functioning of a nation with distributed domestic sovereignty. Marshall’s greatest contribution to American constitutional practice was the establishment of the concept of judicial review: the Supreme Court should be the final arbiter in determining whether Acts of Congress and actions of the Executive (i.e., the President) are consonant with the language of the Constitution. This was accomplished through the resolution of an otherwise obscure suit at law brought by a Maryland businessman, William Marbury, requesting the Supreme Court issue a writ of mandamus to Secretary of State James Madison, requiring the latter to deliver to Marbury an already signed and sealed appointment as Justice of the Peace for the District of Columbia. Marbury was one of a group of 42 men appointed justices of the peace by the lame duck Adams Administration. In the ensuing months, 25 had their appointments confirmed by the new administration. Marbury belonged to the denied group. Marbury v. Madison, unlike virtually all other cases before the Supreme Court, w as one in which the judges sat as a trial court of original instance. Marbury’s request for a writ of mandamus was brought under the terms of article 13 of the Judiciary Act of 1789. Marbury and the host of other ‘midnight’ appointments were a partisan political issue and Marshall was desperate to keep the court from become politicized, realizing that under such conditions, an independent judiciary could not prevail. Marbury had failed in his attempt to secure documentation from the Senate (i.e., from that

Reconceptualizing Cultural Identity and Its Role in Intercultural Article

Reconceptualizing Cultural Identity and Its Role in Intercultural Business Communication and The Business Case for Enterprise Mashups - Article Example According to the article, the cultural identity is an individual’s sense of self-derived formal or informal membership in groups that inculcate knowledge, beliefs, values, attitudes, traditions, and ways of life. The article argues that a broad conception of cultural identity should not in any way privilege nationality, but rather balance the components of vacation, class, geography, philosophy, language, and biological aspects. Since cultural identity changes over time and that evokes emotions negotiable through communication, the article proposes the model of cultural identity that highlights components directly related to business, including economic class and professional affiliation. While such a model proves rather viable in eliminating all forms problems related to poor communication in the business, the reality can prove otherwise. Regardless of the policies or measures put in place to divert attention from such issues defining people in organization, the reality is ra ther opposite. Increasingly, people look at things in a different perspective. For instance, accepting that a person ever committed a mistake is rather odd, especially in organizations that use teams in accomplishing tasks and allocation of duties.

Remedies and restitution Essay Example | Topics and Well Written Essays - 1250 words

Remedies and restitution - Essay Example Pippa could also sue Frank because of having suggested to her that she do something illegal by basically bribing the Council with monies for the town’s visitor centre in exchange for the licence needed to have the Grand Prix off-track go-cart race. The Council could also be sued for having taken the bribe, although Pippa might also get in trouble for having taken the bribe. Pippa might be able to sue Rolling Hills for not having investigated the land well enough to have avoided the fact that there was a colony of rare beetles living in the forest—which should have been surveyed by the company of Rolling Hills prior to the project. Pippa may lawfully ask for the money she made to Hughes & Co. as a down payment because they didn’t start any of the work yet. Wing Nuts may not be liable beause they did not sign a contract of any sort. Rather, it was a booking made by a secretary who was in charge—and was not necessarily the express wishes of several of the peo ple who were club members with Wing Nuts. Julian, however, may be at fault for his hasty booking of the Wing Nuts group without some kind of formal signed contract committing the group to come to the Grand Prix. So, in other words, Pippa is going to be very busy trying to figure out how she is going to proceed in the future, seeing as how she still has to find out what to do next considering the fact that her go-cart race is now not going to happen—at least not in the near future or where she had been planning to have it. Thus, Pippa will definitely have to make alternate arrangements for the future. Consulting Suzi van Blick. This discusses what Suzi should do. This section will discuss what Suzi can claim against who and under what, what remedy can she get under each claim. Suzi may be able to reclaim damages from Pippa for having been contracted to build the track for the go-cart race. However, that having been said, if Pippa can claim that it was not her fault that she di dn’t know that there were rare beetles living in the forest, that may be Pippa’s way of getting out of having to pay Suzi van Blick all of the money that she put into the project that was spent. Thus, it could be proven that Suzi van Blick did not thoroughly and fully investigate and have the land surveyed well enough in order to have discovered the rare beetle colony. She may sue the GreenField environmental group for having ruined the project, because it was majorly because of their protests that the go-cart project was shut down. Thus, she has sufficient cause to protest. Why she can do this is because GreenField could have petitioned the council that the rare beetles be moved to a different locale with the help of local entomologists. However, instead of doing that, GreenField insisted that the beetles be left alone, thus rendering the entire go-cart project useless. Suzi could claim damages, although it is not likely she would have a strong case against GreenField . In fact, Suzi might come under fire for having misrepresented the scope of what Rolling Hills as a company could actually provide in terms of services, when it was really also Hughes & Co. that helped build certain things along the tracks, like pitstops and so forth. In sum, Suzi does not really have many

Computer Science and IT Article Example | Topics and Well Written Essays - 750 words

Computer Science and IT - Article Example Besides, a computerised accounting system is one of the databases -oriented applications where the transaction data is stored in well- established the database (Kiely, 2015).   Computerized accounting system leads to reduction costs, like salaries, higher returns through participation in global banking services and an improved security system that minimizes fraud. Besides, the software has benefits such as accuracy in the issuance of bank statements and fast processing of financial statements as well as easing the highly cumbersome auditing procedure. Alternatively, the system has challenges such as high installation cost, unstable power supply, computer failure and inadequate expertise (Daru, 2015).Alternatively, accounting software is an essential component of the computerised accounting system. The accounting software includes accounts receivable software, accounts payable software, general ledger software and accounting packages and chart of account. The significant factor has to be considered before purchasing accounting software is the accounting proficiency of individuals responsible for the organisation for bookkeeping work. (Daru, 2015).     Failure in voting systems in the current generation is a regular occurrence as a result of various reasons that can be prevented through strong databases. The repeated failures disenfranchise voters and destroy public confidence in the electoral system.   The failed voting machines, frustrated voters and lost votes have been the current reports following every important election.  

Independent project Literature review Example | Topics and Well Written Essays - 1250 words

Independent project - Literature review Example Epistemology seeks out sources of knowledge that has logical application to the cognitive level of every researcher. Those who conduct an inquiry must endeavor to utilize processes as tools for investigation to clarify, justify, and rationalize a phenomenon (Goldman, 1986). Epistemologists usually adapt a normative action to socially theorize an event on its moral basis: is this objective or subjective? Is this deontological or consequentialist? Or, is this absolutist or pluralist? (Goldman, 1986 p.3) Researcher evaluates ideas and arguments, propositions and sentences in deductive or inductive logical processes. Hence, the epistemic component of the study relates to the inferences in the formation of belief or rational conclusions (Goldman, 1986). As such, social epistemology looks into the impact of different patterns in social interaction—its forms, styles, arguments, and the critical interfacing of facts, controversies, assumptions, and theoretical frameworks arising from a phenomenon under study. Heidegger explained that ontology is the doctrine of being and such has interrelation with phenomenology. Ontology explicates the nature of social reality, (Dreyfus & Wrathall, 2005) explores more assumptions, and the categorical character of the subject of research. The ontological side of the study focused on facticity. Researcher would therefore take into the process of engaging, approaching, explaining, questioning and accessing information to determine the subject’s facticity (Dreyfus, et. al., 2005). The epistemic and ontological component of research is often elaborated in related literatures and in the analysis. Methodology refers to systemic procedures on how a research should be undertaken and about how subject of the study is procedurally explicated-- whether it’s qualitative, quantitative and mixed. Methodology also explains the kind of research instruments which will be utilized in generating and consolidating data or evidences.

A Perspective on Water Crisis Essay Example for Free

A Perspective on Water Crisis Essay Global water crisis is one of the biggest problems that the world is facing. Freshwater resources are increasingly becoming scarce today and probably for the next decades. Less than one-half of 1% of all the water on the planet comprises the available fresh and clean water (Maude). Humans already used more than half of the world’s clean fresh water and by the year 2025 the consumption of freshwater will increase to three-quarters. Global water consumption becomes double every 20 years and if this trend continues, the supply of freshwater will not be enough for the demand of the world’s population by 2025. World Bank and World Heath Organization noted that there are about 2 billion people have no access to clean and safe water and about 1 billion people have no enough clean water to meet their daily water requirements. Depleted water resources are attributed to the intensive urbanization, deforestation, water diversion, industrial farming and population growth. As the world population increases, the consumption of accessible freshwater may grow six-fold (Maude). As a result of water crisis, lots of people suffer and die from water and sanitation related diseases such as diarrhea, cholera, dysentery, and hepatitis. Unfortunately, most of the poorest countries in the globe are the ones who are experiencing water shortage. Uganda is located at the Sub-Saharan Africa and is among the poorest countries around the globe. The country relies solely on agricultural industry however, less than half of the arable land is subject for cultivation. Large part of the land area (more or less 82%) of the country is arable, however more than 67% of the country has poor ferralitic soil which has nearly lost its mineral content due to prolonged weathering. Thus, proper soil management is needed for the soil to regain its lost nutrients. The economy of the country has a great potential, considering the potentials of its agriculture and natural resources. There is a great possibility that Uganda will recover from difficulties, most especially from poverty. However, due to some existing problems that the country is facing, it seems to be difficult for Uganda to escape from poverty. One of the biggest problems that the country is facing today is water crisis. Water crisis definitely affect the country as a whole contributes to Uganda’s poverty and worsen her current situation (Dauda, 2003). The country of Uganda is definitely endowed with water resources. About 18% of the total surface area of the country is covered with renewable water resources including lakes, rivers and wetlands. Approximately, it can supply an individual of Uganda with 2,800 m of water in a year (Dauda, 2003). These fresh water resources are considered as the essential resource for sustaining life, preserving the environment, uphold development and alleviating poverty in the country. It has direct impact the quality of life of Ugandans and their productivity as a whole. Water is very essential to Uganda since it plays an essential role in the production of sufficient supply of food for the country as well as supplying electric power all over the country. It is the key resource of the country’s agriculture, food processing and other agro-industries which provides employment to the people of Uganda. Aside from supporting Uganda’s agriculture and industry, water also provides electric power to the country. Indeed, it is the source of hydropower which is the country’s main resource of abundant and cheap electric power. The socio-economic development of the country depends solely on the energy produced from hydropower. Inadequate power supply cannot support Uganda’s large-scale manufacturing industries and agro-industries which may lead to low economic level of the country (National Water Development Report, 2005). The major freshwater resources of Uganda include rainfall, surface or open water and groundwater. Rainfall is the most vital source of freshwater of the country. The rainfall pattern in the country greatly influences the land use potential and consequently the population distribution. The rainfall pattern of Uganda is influenced by the local topography and the presence of Lake Victoria. Rainfall in Uganda tends to increase with altitude; meanwhile, rainfall is apt to decrease with the distance from the lake. High rainfall is noted on the central and western parts of Lake Victoria and over the mountain. Another factor that determines the occurrence of rainfall is the country’s season. The most stable rain season in Uganda is from the months of March to May; meanwhile, the reported variable rainy months in Uganda is from October to December (National Water Development Report, 2005). The major freshwater resources of Uganda are in the form of lakes and rivers. These open sources are often used for the supply of hydropower in the country. The major resources of hydropower in Uganda are the Nile River and Lake Victoria. Lake Victoria supports the fisheries industry of Uganda and provide water supply to the majority of people of Uganda. Indeed, the Lake is also supporting the agriculture industry along its shoreline (National Water Development Report, 2005). However, the Lake’s potential use for the future is now in question since it is experiencing dying up which leads to lower water levels. The available water left in Lake Victoria may not be enough to sustain the required hydroelectric power generation (Xinhua News Agency). Other water bodies include Kyoga, Albert, George, Edward, Ruizi, Katonga, Kafu, Mpologoma and Aswa (National Water Development Report, 2005). Some of these lakes, most especially those on the western and central part are also drying up due to drought which threatens the cattle industry in the area. Cattles have little access to water which may lead to lower production rate and low quality of Cattles (Xinhua News Agency). In addition to drought, the quality of surface water has been deteriorating with time. In most parts of the country, surface and ground water are already polluted due to increased urbanization and population as well as human activities such as poor agricultural practices, poor sanitation practices, industrial waste discharge, and mining activities (National Water Development Report, 2005). Aquifers, which can only be generated and recharged by endogenous precipitation, are also essential resource of freshwater in Uganda. It is the major source of water in rural, semi-arid and arid areas in the country. The occurrence of groundwater is highly dependent on the geologic formation in the country. Uganda is endowed with productive aquifers water; this can be attributed to the geology of Uganda which is dominated by crystalline Basement Complex of pre-Cambrian age. More than 90% of the country is underlie by different kinds of rocks which predominantly include granites, granitoid gneisses and gneisses. Ground water resources are generally found on the underground layer of unconsolidated materials such as weathered bedrock, silt and clay. This groundwater can only be extracted through wells. The highest yielding and productive groundwater can be found in weathered-fractured bedrock which has high permeability (National Water Development Report, 2005). In general, the groundwater of Uganda is in good and sound condition. There are no traces of toxic substances that may threaten the health of the people in Uganda. Moreover, these aquifers have significant amount of minerals such as aluminum, calcium, magnesium metal cations, chloride, iron, manganese and chromium that may not cause harm to the people of Uganda. Consequently, there are few parts of the country that are found to have high amounts of these minerals and have traces of high nitrate and chromium levels in some areas. Aside from high amount of minerals, it was also reported that some parts of the country have found to be positive in Coliform bacteria. Contamination of the aquifers is attributed to deterioration of the borehole casings, leaching of sewage wastes, weathering of aquifer environment as well as poor sanitation condition in the areas around the aquifers (National Water Development Report 2005). In general, the availability and preservation of water resources in Uganda solely relies on various environmental, sociological and cultural factors. The availability of freshwater resources depends on the distribution of water bodies on the country. It is known that freshwater resources in Uganda constitute a great part of the country. However, due to its uneven distribution and seasonality, availability of water is still a big problem on most parts of the country. Ugandans find it difficult to have an easy access to fresh and clean water. Women together with their young are spending so much time and energy on walking a mile-long way just to fetch water from areas with sufficient supply of clean water. The uneven distribution of water resources in the country also influences the agro-industry in the country. Cattle raisers tend to transfer from place to place just to find safe and sufficient water for the cattles. As a result, disease spread and transfer brought by the cattles becomes prevalent on various regions of the country (Xinhua News Agency). Meanwhile, uneven distribution of groundwater greatly influenced the accessibility of Ugandans to clean water. Regions endowed with productive groundwater are indeed rich in geological characteristics (National Water Development Report 2005). The occurrence of extreme weather conditions has a great effect on the availability and safety of water on the country. Heavy rains may cause to flooding and consequently may contaminate the water resources of the some regions in the country. Contaminated water may result to more serious problems such as disease outbreaks, epidemics and even death. Contaminated water is the key reason to the high and increasing mortality rate of Ugandans especially of infants (National Water Development Report 2005). It is reported that most number of mortality occurs on infants and this can be attributed to less accessibility to clean and safe water. Meanwhile, erratic rainfall and seasonality of the occurrence of rainfall in the country resulted to desertification of arable lands. These definitely affect several industries in the country especially those that greatly depend on water (i. e. agricultural industries) (Dauda, 2003). Some of the suspected major reasons of water resources deterioration in Uganda are rapid growth population, urbanization, industrialization, relentless environmental degradation and deforestation as well as pollution. High population density greatly influenced the availability of water resources in Uganda. The population of Uganda in 2007 is approximately 30. 9 million and more than half of it is comprised of infants. The country has an average annual growth rate of 3. 4% which is one of the highest growth rates in the globe. The demand for water relatively increased while the supply decreased with high population density. And as what the country is experiencing, there is no enough clean water for all. Increased population accompanied by urbanization and industrialization resulted to increased pollution and deforestation. Most of the land bodies are converted to industries which produces toxic wastes that pollute the environment especially water bodies. This contributes to the decreased supply of water in Uganda. Depleted water supply is also attributed to poor agricultural practices in the country such as cultivation, pastoral activities, and livestock practices. Poor sanitation is also identified as a possible cause of freshwater shortage in Uganda. Some of the land owners that cultivate their own lands seem to be unaware of environmentally sustainable practices. They have poor knowledge on these methods that they do any practices which may pollute their environment. These practices accompanied by poor sanitation will indeed bring negative effect on Uganda’s environment. Poor sanitation practices are among the factors that contribute to depleted water supply and water related diseases in Uganda. Fetching and purifying water are very labor intensive, considering the distance that Ugandans walk just to obtain clean and safe water. They often share and obtain polluted water from water resources where farm animals usually dwell. However, as an everyday routine, it became arduous to the people of Uganda to fetch water from distance places and to consume so much time purifying the water that they fetched. People tend to ignore the hazard that the contaminated water may bring them; they just drink the water as ease without purifying it. As a result, development of water related diseases became prevalent in Uganda (Dauda, 2003). Another major factor that leads to water shortage in Uganda is global warming. Majority of Uganda’s water table, especially the northern and northeastern part is dry due to global warming and environmental degradation (Dauda, 2003). Global warming may also contribute to the occurrence on the extreme weather condition in the country such as El Nino and La Nina. Moreover, these parts of the country are experiencing wide fluctuations in the availability of water between wet and dry seasons as well as variations in the onset of rainfall as a result of the extreme weather conditions (National Water Development Report 2005). Prolonged drought, which leads to drying up of significant water tables of Uganda, has also threatened the food security in the country. Due to prolonged drought, production of staple foods of Ugandans such as sorghum and millet relatively decreased (EuropaWorld). Just like any other country, Uganda is rich in traditions and belief. They value their culture so much it comes to a point that their beliefs and traditions hinder the possibility of development in their country. There are existing cultural norms that are related to the water bodies in Uganda. Some of the water bodies in Uganda are believed to have special healing powers for many diseases and supernatural dwellers as well. Moreover, these water bodies have potentials for many significant uses such as hydropower resource and irrigation for agricultural industries. However, due to close cultural attachment of people of Uganda to these water resources, the government found it difficult to create potential programs that will optimize the use of the water resources in the country (National Water Development Report 2005). Aside from various problems stated previously that have great impact on freshwater availability, Uganda’s neighboring regions seem to contribute on the water crisis that it is experiencing. Majority of Uganda’s freshwater resources have existing crossing frontiers which bound the country from maximizing its use on its own water resources within its territory. Though they have legal riparian rights to have a share on the water resources, these transboundaries definitely affect the socio-economic growth of the country since water is considered to be as the key player in the development of Uganda (Encounter Uganda Well Health). For one thing, these transboundaries serve as the main competitors of Uganda from the available water resources. People of Uganda have little access to large water resources since they are restricted to come across the boundary of another country. Moreover, these crossing frontiers not only prevent Uganda from optimizing its available freshwater resources but source of food and employment as well (National Water Development Report 2005). In order to unravel the existing problems in Uganda, its government decided to make some modifications on its various sectors, most especially the water sector. Several studies and situational analyses are conducted by the water sector that leads to preparation of comprehensive strategy of water sector and investment strategies. The government has anticipated many factors and they made it possible that the strategies may still be implemented on the sector up to 2015. The government has already started implementing some of the strategies and one of these is Sector Wide Approach to Planning (SWAP). SWAP requires all stakeholders to participate in the planning and implementation of the sector’s activities while optimizing benefits for all. The strategy has provided a regular budget on the programs that are made which is relatively different to the previous programs that the sector has made (National Water Development Report 2005). Another significant program that also aimed to promote sustainable management and development of water resources of the riparian regions is the Collaborative Partnership Program. The program is focused in improving the coordination of efforts of the different stakeholders. The program is also focused on harmonizing strategies and plans that involves sustainable management and development of the shared water resources. This makes Uganda very eager to have a close relationship with its neighboring regions. Uganda became enthusiastic with regard to making joint plan, management and development of the water resources that they shared. Uganda’s aim on making collaboration with her transboundaries is for all of them to obtain fair benefits from the water resources as well as to ensure that they will get sufficient supply of clean water. Fair utilization and consumption of shared water provide a high opportunity for sustainable use of resources as well as sustainable growth and development. Moreover, Uganda will be able to support its economic and social objectives through collaborating with its cross frontiers (National Water Development Report 2005). The riparian countries including Uganda will have comparable advantages from the equitable use of shared water. While building a close relationship with the riparian countries, the potentials of the existing industries in Uganda may be developed through collaboration with her neighboring regions. Advancement in its industries may lead to economic development of the country and in turn advancement on the quality of life and well being of its whole nation. Meanwhile, there are potential conflicts identified in the implementation of collaboration program between the riparian countries. Aside from the common objective that the riparian countries agreed on making the joint collaboration, these countries also have different interests which make a potential conflict between them. They made plans and implemented projects which do not take into consideration the wide coverage of the shared water resources. They do not anticipate the possible conflicts that may arise by implanting their plans. As a result, some of their individual plans for the development of their own countries are contradicting with the plans of other countries. Plans of other countries will not be possible if other countries’ plan will be allowed. Another issue that makes the joint program complicated is the mistrust among the cross frontiers. This issue seems to be unavoidable since the riparian countries have different objectives and interest in joining the joint program. They refuse to show their own data regarding the shared water resources as well as information of their plans and strategies. Since the riparian countries have no idea of the plans and programs of other riparian countries there are instances that the individual projects implemented are the same with other countries (National Water Development Report 2005). The last issue identified is the restoration of the environment. One of the minor objectives of the joint program is to conserve the environment; however, it is found to be difficult to implement their plans and projects while not taking into consideration the possible negative effect that it may bring to their environment. The main concern here is the methods of the activities and projects as well as the way these are conducted. Countries located on the downstream of the shared water resources are threatened by the possible effect of the activities that the upstream countries are conducting. Also due to mistrust, they are not guaranteed that the upstream countries are performing the activities in a proper way. It is essential that both the upstream and downstream countries will conduct their programs and projects in such a way that these programs will not affect that conservation of environment that they are promoting in the country. Through this little start, there will be a great possibility that their countries will surpass big problems such as water crisis and most of all poverty. References Barlow, Maude. The global water crisis and the Commodification of the worlds water supply A Special Report issued by the International Forum on Globalization (IFG). Retrieved May 30, 2008, from http://www. thirdworldtraveler. com/Water/Global_Trade_BG. html Toure, Dauda. 2003. The Millennium Development Goals Progress Report for Uganda. Retrieved May30, 2008, from http://www. undg. org/archive_docs/6197-Denmark_MDG_Report. pdf 2005. National Water Development Report: Uganda. Retrieved May 30, 2008, from http://www. unesdoc. unesco. org/images/0014/001467/146760E. pdf Xinhua News Agency. 2006. Lakes in Uganda dry up due to prolonged drought. Retrieved May 29, 2008, from highbeam. com/doc database. Encounter Uganda Well Health. Retrieved May 29, 2008 from water_website database. EuropaWorld. 2003, February 21. Northern Uganda: The Forgotten Crisis. Retrieved May 29, 2008, from http://www. europaworld. org/week117/northernuganda21203. htm

Comparison of China and Indias FDI

Comparison of China and Indias FDI ABSTRACT Welcoming Foreign Direct Investment (FDI), means of India and China differ to some extent which gives to some important subjects of concern about the definite FDI perspectives of India. In the days to come, can India became an FDI destination equivalent to that of China. The thesis mainly focuses on these issues. It will also guide us with the necessary steps that the country needs to follow to turn into a attractive FDI destination in World. India was lagging to a large extent when compared to the FDI inflows that China has. In part, this difference shows the trust that the foreign investors have in Chinas growth and the disbelieve they had in Indias loyalty towards the free market reforms. On the other hand, Indian Diaspora was the drawback for its own success until now and interested to welcome the investors to back home. India has become a supportive backbone to private enterprise in terms of its development in infrastructure. When compared to Chinas capital markets Indias market shown a great potential and transparency In the case of India which is more dependent on its organic growth, it is using a wide range of resources which shows that there will be a more sustainable progress that Chinas FDI driven method. Can India overtake China? Is no more a childish question and if it shows up the Indias wiser progress and according to the policy experts, the wiser the step more growth is shown in the economy. CHAPTER1 Brief Analytical framework What is FDI? Foreign Direct Investment (FDI) is a networking ingredient of the progress in the globalisation of world economy. FDI reduces the total capital invested by foreign investors, directly or indirectly to companies in different economy with a desire of attaining profits to be shared from the company in which they invest. The foreign investors attains possession of assets in the invested country companies as a relative ratio to their equity holidays. FDI by definition is generally known to show a long-term commitment because it will be a share of ten percent or more in the host country firm, together with the management capabilities.[1] Role of FDI: The significance of FDI lies beyond the financial investment that invested in the country. Along with this, FDI investment can be a mechanism for developing international marketing of products in terms of knowledge, management abilities, technical aspects of design, brand names, way of marketing and characteristics etc.. FDI can produce desirable results for both local industry and customer, by providing improved show up in the product design and technological transfer, way of utilizing global management skills of human resources, setting the firm with global standards of competitiveness new channels of export markets, providing wide range of services in terms of internationally quality goods and channels and with an increase in the employment prospects.[1] Taking into consideration of all the above aspects, FDI can be mentioned as an important means of economic growth and is a driving factor of growth in developing countries. FDI investments are normally choosen as better option than the other forms of finance, as they dont create any debts, no-volatile and returns are directly proportional on the projects invested by the financers. In the present situation of rapid growth and tremendous change both in technological and managerial aspects, their need is always to be welcomed.[1, 2] Choice of location of FDI: According to Dunnings Ownership Location Internalisation (OLI) concept the worthful site productions of FDI investments to the host nations in terms of location benefits that the foreign investors made by the FDI. The concept shows that the involvement of developing nations in total investment of foreign direct inflow has been grown considering over the past 25years, taking into the consideration of the changes taken place in the past decades. For example looking for agricultural resources was high in 20th century when compared to the present. The present investments of FDI are complex to a large extent and are dependent on a wide variety of conditions base on the growing competition on the market in which the industries own and to the economic policies at the local and the host countries. [1,2] FDI has been viewed as a technique to enhance the growth in the economy by the developing nations. In terms of IMF, FDI is an investment internationally for attaining a lasting interest by a local firm in one economy in an enterprise firm in another economy. In spite the developing nations are pushing hard to get on the FDI but to a large extent FDI is gained by developing nations, for example it is one and half million dollar investment in the year 2004 China and India are the two developing powers of the developing nations, comprising of thirty seven percentage of world population. Both China and India has a large scale of natural resources, skilled labour and unskilled labour, affordable labour with good quality large local markets and the stable political use.[2] By taking all these into consideration we can say that they have a tremendous growth in the FDI to setup the local and international markets and also to become a significant entity in the economic growth globally. India and China are the two growing nations of Asia which are at present the higher priority nations for FDI investment. Both India and China have their trends of policies for getting on the foreign investment. India is the first country in Asia to setup a export technologies in 1965. India has drastically slowed down by not utilising the foreign investment because of it s self reliance and export replacement until the late 1980s till the introduction of new reforms (LPG) liberalisation, privatisation and globalisation in 1990- 1991.[3] India and China are the two nations which are best suited for the FDI investments globally. Inspite, India has introduced excellent financial and instituting reforms easier to the Chinas introduction of these, now China shows up a better FDI in contrast with India. It is clearly evident that China is ahead of India, there are some important cases that India has to learn from Chinas experience.[1,3] The financial markets governed by SBI in India are much enhanced when compared to China. India has a good service sector which requires small capital inflow than the manufacturing sector. Based on the analysis of AT Kearney, it is evident that India has a high enhance of becoming number one manufacturing location.[3] Structure of Dissertation: The thesis is discussed in a total of eight chapters. First chapter deals with the statement of the problem and comes out with the goal of this thesis. Second chapter deals with Indian and Chinese economy. 3rd chapter deals with FDI and developing countries. 4th chapter deals with Indian and Chinese FDI. 5th chapter deals with analysis of Indian and Chinese economy using SWOT and PEST analysis. 6th chapter deals with the methodology followed by observations and enhancements in the seventh chapter. 8th chapter deals with the conclusion and recommendation to be taken by nations to increase FDI inflow. Statement of problem: India secured independence two years earlier than China, but it is still behind in socio-economic development signs. Once China became a member of WTO China began to be choose as best FDI investment nation among the developing nations. In terms of Asian Development Outlook and UNCTAD(2005) point out that Indias FDI is purely less than that of China and there is a quite enough difference between the actual realisation and approvals. However, China was ahead of the India because of this implementation of open door policy in 1979 for the inflows of FDI to grow its economy to the modern standards and capitalistic ways, it being a socialistic system. Eventually, India also shown growth in its economy through LPG policies from 1991 onwards breaking out the barcodes of the license control raj. But according to RBI rightly spoken words Despite all the talks we are no where even near to begun globalise in terms of any commonly used signs of globalisation. In fact we are still one of the best globalise among the major nations, however we take a look at it. Justification of study: The thesis point out the comparative study of India and China over FDI, it is mainly discussed about the policy reforms in India to make more FDI investments, next steps to be taken by India for attracting FDI and how to overtake China in the FDI inflows. The growth of FDI is a major source making income for many developing nations like China and India. It brings several advantages like implementation of new products, skills, new markets and technology to the local country. India is preferred as the second best nation for the foreign investment after China which showed a growth of one hundred and eighty four percentage in the year 2006-2007. Inspite of better economical and managerial reforms of India over China, India is lagging behind China. The thesis demonstrates whether the current reforms in India are sufficient to overtake China. AIMS and objectives: To identify the factors that develops the growth of Indian financial system through its policy changes. To find out what initiatives made by Indian government to attract the FDI and its policy changes made by the government of India to enhance the Indian health care system. To analyse participation and involvement of FDI in India and China, also to identify what India can learn from China. To produce qualitative evaluation about past and current issues which effects both India and China by FDI? To produce the comprehensive documentation of key findings of government participation of both countries by FDI. To conduct a competitive comparison by FDI in India as well as in China CHAPTER2 A Framework of FDI Overview of Indian FDI: The Indian government behaviour towards the foreign investment has been modified to a large extent during the last decade. Foreign Investment at that time was restricted only to a certain particular industry under special norms has now been made liberal under the terms of restrictions and particular industries. This shows the changing confidence in the fundamental of the Indian economy and the drastic step of the Indian government to cope up with the global economy. Approval ways for foreign Investment in India are primarily most vigilant.[3,4] FDI is considered as a significant step in the process of growth of economy in the developing countries. FDI is certainly the best investment policy in market when compared to the other reforms of finance since it does generate and debt, non-volatile and the benefits are dependent on the performance of project invested by the investors. With the implementation of new policy in 1991 (LPG) and other reforms policies, India has seen a growth in the investment and outflow of FDI into the nation. This was to a large extent due to the modification and dismission of trade opposing policies.[4] Through economic liberalisation in India had taken its roots from the late 1970s, economic reforms in India have only started after 1991, the reforms which have opened up in 1991 have pushed the economy from the government control, government monopoly to the private sectors of the economy growth. The license raj is a constraint in the past, inspite of the slow down of the economy globally due to global crisis in 2008-2009 India had shown up a growth of nearly 6.7%. According to the Asian development banks Asia capital market report the Indian economy was grown as a third largest after the China and Hongkong in the growing Asian markets, with a market capitalisation of nearly US$ 600 million.[3,4] Investment Environment: Although Indias foreign investment policy gives access to hundred percent FDI in most sectors, India till now has not attained its growth as an FDI destination to its maximum extent. The governments efforts in maximising the FDI investments are not up to the mark because of the flows with in the government like corruption, bureaucracy, and importantly the drawbacks in the needed infrastructure. India is known for its different operating ways which differ from state to state.[3,5] Important reforms in the investments concerned issues; mainly the foreign investment was delayed in the last few years mainly because of UPAs dependence on Indias communist party for the agreement in the parliament. The end of this agreement in 2008 brought into existence only a small set of reforms. For example, in February, the government implemented modifications that opened channels for FDI inflow like the insurance, telecom and retail. The governments decision did not change any of the FDI capitals but it had given a chance to invest in these sectors beyond the limit but it should be taken place indirectly. Once major fore seeing, is that UPA government, which has been rejected without any support of the Indias main left list parties, will now utilize its power to step forward in implementing more economic and investment reforms, many of which are anticipated to provide chances to foreign investors. [5,1] Reforms are showing a growth with a normal place as a result of the global crisis and the diversity of views on the issues, even with the congress party itself. Plans to improve the tax system, create a self dependent debt management system and to a small extent privatisation of government owned firms are being taken into consideration and are proposal. Recent performance: There was a growth of 6.2% y/y in the GDP for Q2-09 (through it is less than the predicted one) with an increase of 5.8% in Q1-09. Grown was reduced to 7.4% for 2008 and is expected to continue the same pattern for the next few quarters. Growth in the first half of the year came on the side of high government prediction spending and stimulus spending. But less monsoon rainfall this year will reduce growth aspects. Industrial growth in the production is at 10.4% y/y in August at a tremendous state since October 2007, largely on the side of government mode of operation and inventory backing.[5,7,9] Fiscal Policy: The budget for the FY09/10 coming year is estimated that the reduction of the deflect to 6.8% of GDP from 6.0% the last year and the tax revenues getting worsened to 10.9% of GDP from 11.6%. Total investment of the central government is to grown to 17.4% of GDP on the things due to increased subsidies and for providing more opportunities on welfare and employment programs especially in rural areas to increase demand and growth trajectory. The period given to small farmers to repay their dues under the debt waiver and debt cancellation schemes has been increased up to the year end. More money is expected to be deposited into the National Rural Employment Guarantee scheme which gives assurance that each rural family works 100days on public sector projects. Fiscal consolidation is to be given up for small term improvement and is to be gained in the medium long term. The budget does not include important reforms which are significant for private business and foreign investment.[1,3 5] Monetary Policy: The Reserve Bank of India is likely to take the control of more monetary losses since October 2008 and to hold the repo rate as well as the reverse repo rate at 47.5% and 3.25% respectively in tis October meeting. The case reverse necessity can be increased once the liquidity conditions have become better. Lower policy rates are step by step converting into lower commercial rank landing rates, but the business is being more careful about the giving and taking. Large energy prices earlier in 2008 had pushed the government to maximize retail fuel prices, making the Wholesale Price Induse(WPI), the RBIs target indicator for inflation, nearly to 12% in July 2008. The external sector: 2008 saw maximum trade downfalls due to the increase in the oil prices. At the same time the plunge in the commodity prices failed to make it a substantial current account profits in 2008 due to negative export performance and value of rupee decreased to a maximum extent. The considerable reduction in imports in 2009 motivated to an growth in the current account deflect in Q1-09 after a large extent of downfall in the last three quarters of 2008. The overall Balance of Payment(BOP) figures for H1-08 showed a addition; but by H2-08 it became a negative.[6,1,2] H1-09 BOP balance is now once again in showing improvement due to a firming on the capital account side but the current account side was worsened in Q2-09. Foreign reserves, though are of considerable amounts have been tightened in the past months, but have raised again in July up to USD 261 billion and showing over 9.4% months of current account debit cover. The external debt is a tiny one at 18.7% of GDP providing a solution. The rupee value dropping in 2008, have brought loss of 20.7% against the USD, but in 2009 it coped up when compared to the lost value worth.[1,2] Changes of Policies in 1991: In July 1991, India has observed some important reforms comprising of certain de-reputation of industrial sector as well as liberalisation of FDI and imports. The important conditions taken in this policy alternation were: Cancellation of industrial licensing in all organisations with exceptions like security-concerned and strategic areas. Enhancement of capacity facilitates the market necessities for the running industries. Nullify the rules on investments by MRTP and FERA industries. Approving normally for foreign investment below or equal to fifty one percent of the equity under consideration of high technology and high investment priority industries and liberalisation of capital market. While implementing the practice of mixed economy would continue, the new economic policies had placed a few hard alterations in government sector industries. Example: Minimizing the set of industries reserved for government sector from 17 to 8 and by December 2002 the set included only three sectors under the public sector units.[8, 10] Atomic energy Minerals mentioned in the atomic energy order, 1953. Railway transport. The number of fields according to which industrial licensing is necessary is reduced to fifteen, declaration of new policy renewal fund(NRF) in order to handle the worse state sector organisations; for converting them into more independent and accountable, along with which foreign investment upto fifteen percent is allowed without any restrictions and foreign technology allowance for 35 main industries. These types of policy changes had increased the argumentation in India among the supporters of liberalisation policy and one who doesnt support the policy. The argument is still on; however it was later changed slowly with time of almost a decade of policy introduction and the result in the performance was visible. [9,10] CHAPTER 3 FDI in China Introduction: Right from the start of economic policies and begin of foreign capital investment in 1979, China started getting a huge chunk of foreign investment flows. China has become the second largest FDI investment country in the world where United States occupied the first place and China has also secured the biggest host nation among the developing countries. Chinas position as a host nation of FDI can be termed equivalent to the developed country though it is a developing nation with the highest FDI inflow.[17] For twenty years (1979-1999), the actual FDI investments in China from 1979 to 1999 is nearly USD 306 billion, which is equivalent to ten percent of the global investment and thirty percent of the developing countries together. Chinese FDI investment pattern can be studied according to the alterations in the policy reforms- the first phase is from 1979- 1983, second phase is from 1984-1991. In the first phase only the Chinese government has set up four Special Economic Jones(SEZs) in Guangdon and Fujan provinces, and implemented new set of regulations with supporting capabilities for the FDI in these SEZs. Though the amount of FDI investments is limited it is mostly taken place in these SEZs.[17,18] Determination of FDI in China: According to the study FDI is basically categorized into two types: market oriented and export oriented FDI. According to the market oriented type of FDI the driving factors for promoting the FDI investments is the size and growth of the host nation. The export oriented FDI on the other hand mainly concentrated on the wealth competitiveness. There are some of the features which support both FDI which China is said to have are mentioned below.[17] Size and growth of the Chinese economy and policies. Distribution of FDI in China in the sectors of natural and sect oral and geographical. Human resource capabilities like cost and quality of labour. Infrastructure interms of physical, economical and technology. Willingness to trade internationally and its channels to foreign markets. Introduction of regularity principals and economic policy coherence. Investment security and promotion. Capital Availability: By the early 2000s, China had outnumbered United States with a more number of investments globally. FDI is a technique in which a non-local investor is interested investing in a local location. The investments of FDI into China can be counted on the basis of the global capital markets presence at that time and normal economic environment at that particular time. [13] A challenging global economy, capital markets and business situation at that time implement options of creating huge chuncks of investment capital that exceeds the amount of good ideas of local investment can result in the institutional, organisational and individual investors to invest in the growing and developing markets of the world. Competitiveness: Chinas welcoming nature as a perfect host of foreign investment capital lies on its enhancement of infrastructure, resource opportunities like(physical and labour), quality and working abilities and the development of the managerial vale chain. The high degree obviously make China as a perfect host of FDI when compared to other countries, like India which strive for its success in attaining the same investment capital. A growing and developing nation requires good standards of infrastructure and resources in order to promote its sale of goods and services. [13] Less transaction charges, due to the good standard of the aspects, helps investors to earn returns on these investments as their organisations are able to make benefits roads, highways, bridges and other ways of physical infrastructure, must be present runned and should be more secure for the transportation of the goods and also for the commutation of the workers. Another aspect for being a perfect FDI involves the availability of desired labour, who have the required aptitudes, experience and perfectness to create , manufacture and provide goods and services that can be seleld in the growing markets. Regulatory environment: When a national government acts into scene by implementing rules and policies with an objective at favouring state entities at the cost of privately running firms, such an environment can be detrimental to initiatives that aim to attract FDI. Like these, the regulatory environment can enhance or become a downfall fro the foreign direct investment for China. Large amount of regulations tend to show the entrepreneur and commercial activities, as the management and labour must spend more quality of time to carry on with these rules and regulations. If an investor wants to start a manufacturing facility in China, excessive start up costs, loyal exposure and other difficulty compliance items may implement that investor to set up the facility anywhere the environment is more complaint to the industry. Other types of regulations which are must the compulsory joint venture partnership in which, along with the foreign investors, the state entity or local entity or local industry as a partner. A well established judicial system is favoured for the perfect FDI host. If a judicial system is centralized towards the locals who some time wants to practice some unfair, unethical and illegal means of business opuurtunities will also contribute to making China as a less choose destination.[17] Another regulatory technique which supports for a favourable investment is the governments implementation of investment activities by providing alluring financial breaks like the tax breaks, grants, cheap government promoters financial services then it can be more effective in enhancing the making of a business more benefitiable and within a short span of time. Stability: Political and economic stability can improve the state of the on flows of FDI. Stability means estimation of future and giving opportunities for organisations to attain better understanding of future markets. On the other hand constant social turnover are the constraints which are not favourable for a good progress of the investments. Economic instability can lead to the depreciation of the currency value due to hyper inflation. To promote FDI, natives/works as well as trading should have a considerable amount of respect towards Chinese low end rates. Violence, underground criminal running, blackmail, kidnaps and duplicate currency and products have all been the flaws in China that serve to reduce the efficiency of conducting trade activities. The justice system should also follow best practices for eradication and elimination of these unfaithful activities for a better investment opportunities.[17,18] Local Chinese market and business climate: The most shining feature of China is the large size of its population and market, and the aspects of growth result from this size. The ability of organisations- backed by foreign investment to sell to a considerable amount of local market makes China as an attractive destination for FDI. As the Chinese economy is showing a tremendous growth, high end industries, engineering, robotics, and luxury goods among others can step into Chinese market as a large scale investors because of its perfect local conditions, resources and other FDI chances are enhanced growth and FDI can begin a success domino effect. The more foreign investment in the regions the more will be its growth. If the growth of a particular location is in a good progress to more investors will be willing to make FDI inflows. This point gains the benefits of the Chinas sizeable market, which represents growth oppurtuniteis in the present and growing commercial business. The higher the FDI inflows into the nation, the more the economic growth, forming a cycle of economic growth.[14,18] Openness to regional and international trade: Open nature of the business market helps in enhancing the promotion of FDI hosts. The main important thing to be taken into consideration is the business capability to promote its products and services to both local and international markets. Is the Chinese based organisations have restricted or less trading activities to foreign customers to be taken into consideration the United States, Western Europe, Japan and others tehn the local market may not able to accomplish a single investment in money and energy. Trade restrictions such as tariffs are genrally considered as less motivated options by other nations. An American product which is having high price while being marketed in China is of no demand in the local market due to the unnaturally raised price, such actions normally rise the tariffs of such local Chinese product in contrast with the US products and in certain cases, an outright ban on certain goods and services.[15] Export-friendly policies, normally will play a major role in determining whether to invest in China, especially for organisation which have large chuncks of investments in other local markets. For enhancing economic policies and growth, it is necessary to initiate business-friendly system, and international free trade agreements are needed to be implemented by market developing governments. The impact of FDI on Chinas international trade: Right from 1980, Chinas foreign trade has shown an tremendous growth. In the period of 1980 and 1998, its share in the world trade has rised to three percent from the base value of one percent. The Chinas economy free flowness can be measured by the ratio of foreign trade to GDP addition from twelve percent to thirty four percent. It is evident that the FDI has been the main aspect which enhanced the improved Chinas entrance in the international sector of the production process known as globalisation. The conclusions can be derived from the below state empirical evidences. Chinas comparative advantages: As estimated by economic theory, Chinas main structural strengths in international trade have been focused in a small definitive number of labour intensive manufacturing products leather and shoes, dress materials and some other manufactured products (like, sports items, toys). Its main structural drawback lies in investment and technology intensive goods; machinery, turbines, textile raw materials and plastics. Ten sectors in which China had excelled had resulted in a total of sixty eight percent of Chinas exports and ten sectors in which China has fallbacks resulted in a total of 42 percent of Chinese imports.[15] This present a brief about the differences that exist in policy making with Chinas foreign trading partners ( the EU-15, the United States, Japan) and the four developing individualized economies (Hong-Kong, Taiwan, south Korea and Singapore) and the presence of big inter-sectarian complementary. In the same channel, China had an excellent net export in the labour based products both in its business with Asia and the rest of the world. Chinas specialisation policies have never been introduced. Its excellence in some of the more basic sectors (clothing and knitwear, carpets) was turned off in the nineties, while new comparative benefits evolved and other were vanished. In particular China had introduced new comparative benefits in computer tools, consumer electronics and electrical appliances and home used electrical apparatus though there was excellent growth in exports. At that moment it had given up its comparative benefit in three sectors, out of which crude and refined oil are same. These turnovers in the specialisation also emerged the Chinas position in world trade. While in 1997 China still continued to hold the biggest market chuncks in the most tremendously growing world markets like tele communication devices, computer devices and electrical appliances and tools. [17] A Comparatative analysis China and India in a context of composition of GDP: There is scepticism about the China that has the business structure of a developing nation. The inter sectored business specialisations were more strongly established when compared to other developing Asian nations. This can be credited to the Chinas wide extent and big resources of cheap labour which helps it in having a continuous enlargement of labour specific exports. The Analysis of the IMPACT of FDI on Chinas structure: Chinas policy is so attain export-related FDI which is interested in its enhancement has gained a excellent success. It has allowed it to construct on international level of manufacturing sector, which is highly capable to meet the world markets. There was no effect on this export-related and impo Comparison of China and Indias FDI Comparison of China and Indias FDI ABSTRACT Welcoming Foreign Direct Investment (FDI), means of India and China differ to some extent which gives to some important subjects of concern about the definite FDI perspectives of India. In the days to come, can India became an FDI destination equivalent to that of China. The thesis mainly focuses on these issues. It will also guide us with the necessary steps that the country needs to follow to turn into a attractive FDI destination in World. India was lagging to a large extent when compared to the FDI inflows that China has. In part, this difference shows the trust that the foreign investors have in Chinas growth and the disbelieve they had in Indias loyalty towards the free market reforms. On the other hand, Indian Diaspora was the drawback for its own success until now and interested to welcome the investors to back home. India has become a supportive backbone to private enterprise in terms of its development in infrastructure. When compared to Chinas capital markets Indias market shown a great potential and transparency In the case of India which is more dependent on its organic growth, it is using a wide range of resources which shows that there will be a more sustainable progress that Chinas FDI driven method. Can India overtake China? Is no more a childish question and if it shows up the Indias wiser progress and according to the policy experts, the wiser the step more growth is shown in the economy. CHAPTER1 Brief Analytical framework What is FDI? Foreign Direct Investment (FDI) is a networking ingredient of the progress in the globalisation of world economy. FDI reduces the total capital invested by foreign investors, directly or indirectly to companies in different economy with a desire of attaining profits to be shared from the company in which they invest. The foreign investors attains possession of assets in the invested country companies as a relative ratio to their equity holidays. FDI by definition is generally known to show a long-term commitment because it will be a share of ten percent or more in the host country firm, together with the management capabilities.[1] Role of FDI: The significance of FDI lies beyond the financial investment that invested in the country. Along with this, FDI investment can be a mechanism for developing international marketing of products in terms of knowledge, management abilities, technical aspects of design, brand names, way of marketing and characteristics etc.. FDI can produce desirable results for both local industry and customer, by providing improved show up in the product design and technological transfer, way of utilizing global management skills of human resources, setting the firm with global standards of competitiveness new channels of export markets, providing wide range of services in terms of internationally quality goods and channels and with an increase in the employment prospects.[1] Taking into consideration of all the above aspects, FDI can be mentioned as an important means of economic growth and is a driving factor of growth in developing countries. FDI investments are normally choosen as better option than the other forms of finance, as they dont create any debts, no-volatile and returns are directly proportional on the projects invested by the financers. In the present situation of rapid growth and tremendous change both in technological and managerial aspects, their need is always to be welcomed.[1, 2] Choice of location of FDI: According to Dunnings Ownership Location Internalisation (OLI) concept the worthful site productions of FDI investments to the host nations in terms of location benefits that the foreign investors made by the FDI. The concept shows that the involvement of developing nations in total investment of foreign direct inflow has been grown considering over the past 25years, taking into the consideration of the changes taken place in the past decades. For example looking for agricultural resources was high in 20th century when compared to the present. The present investments of FDI are complex to a large extent and are dependent on a wide variety of conditions base on the growing competition on the market in which the industries own and to the economic policies at the local and the host countries. [1,2] FDI has been viewed as a technique to enhance the growth in the economy by the developing nations. In terms of IMF, FDI is an investment internationally for attaining a lasting interest by a local firm in one economy in an enterprise firm in another economy. In spite the developing nations are pushing hard to get on the FDI but to a large extent FDI is gained by developing nations, for example it is one and half million dollar investment in the year 2004 China and India are the two developing powers of the developing nations, comprising of thirty seven percentage of world population. Both China and India has a large scale of natural resources, skilled labour and unskilled labour, affordable labour with good quality large local markets and the stable political use.[2] By taking all these into consideration we can say that they have a tremendous growth in the FDI to setup the local and international markets and also to become a significant entity in the economic growth globally. India and China are the two growing nations of Asia which are at present the higher priority nations for FDI investment. Both India and China have their trends of policies for getting on the foreign investment. India is the first country in Asia to setup a export technologies in 1965. India has drastically slowed down by not utilising the foreign investment because of it s self reliance and export replacement until the late 1980s till the introduction of new reforms (LPG) liberalisation, privatisation and globalisation in 1990- 1991.[3] India and China are the two nations which are best suited for the FDI investments globally. Inspite, India has introduced excellent financial and instituting reforms easier to the Chinas introduction of these, now China shows up a better FDI in contrast with India. It is clearly evident that China is ahead of India, there are some important cases that India has to learn from Chinas experience.[1,3] The financial markets governed by SBI in India are much enhanced when compared to China. India has a good service sector which requires small capital inflow than the manufacturing sector. Based on the analysis of AT Kearney, it is evident that India has a high enhance of becoming number one manufacturing location.[3] Structure of Dissertation: The thesis is discussed in a total of eight chapters. First chapter deals with the statement of the problem and comes out with the goal of this thesis. Second chapter deals with Indian and Chinese economy. 3rd chapter deals with FDI and developing countries. 4th chapter deals with Indian and Chinese FDI. 5th chapter deals with analysis of Indian and Chinese economy using SWOT and PEST analysis. 6th chapter deals with the methodology followed by observations and enhancements in the seventh chapter. 8th chapter deals with the conclusion and recommendation to be taken by nations to increase FDI inflow. Statement of problem: India secured independence two years earlier than China, but it is still behind in socio-economic development signs. Once China became a member of WTO China began to be choose as best FDI investment nation among the developing nations. In terms of Asian Development Outlook and UNCTAD(2005) point out that Indias FDI is purely less than that of China and there is a quite enough difference between the actual realisation and approvals. However, China was ahead of the India because of this implementation of open door policy in 1979 for the inflows of FDI to grow its economy to the modern standards and capitalistic ways, it being a socialistic system. Eventually, India also shown growth in its economy through LPG policies from 1991 onwards breaking out the barcodes of the license control raj. But according to RBI rightly spoken words Despite all the talks we are no where even near to begun globalise in terms of any commonly used signs of globalisation. In fact we are still one of the best globalise among the major nations, however we take a look at it. Justification of study: The thesis point out the comparative study of India and China over FDI, it is mainly discussed about the policy reforms in India to make more FDI investments, next steps to be taken by India for attracting FDI and how to overtake China in the FDI inflows. The growth of FDI is a major source making income for many developing nations like China and India. It brings several advantages like implementation of new products, skills, new markets and technology to the local country. India is preferred as the second best nation for the foreign investment after China which showed a growth of one hundred and eighty four percentage in the year 2006-2007. Inspite of better economical and managerial reforms of India over China, India is lagging behind China. The thesis demonstrates whether the current reforms in India are sufficient to overtake China. AIMS and objectives: To identify the factors that develops the growth of Indian financial system through its policy changes. To find out what initiatives made by Indian government to attract the FDI and its policy changes made by the government of India to enhance the Indian health care system. To analyse participation and involvement of FDI in India and China, also to identify what India can learn from China. To produce qualitative evaluation about past and current issues which effects both India and China by FDI? To produce the comprehensive documentation of key findings of government participation of both countries by FDI. To conduct a competitive comparison by FDI in India as well as in China CHAPTER2 A Framework of FDI Overview of Indian FDI: The Indian government behaviour towards the foreign investment has been modified to a large extent during the last decade. Foreign Investment at that time was restricted only to a certain particular industry under special norms has now been made liberal under the terms of restrictions and particular industries. This shows the changing confidence in the fundamental of the Indian economy and the drastic step of the Indian government to cope up with the global economy. Approval ways for foreign Investment in India are primarily most vigilant.[3,4] FDI is considered as a significant step in the process of growth of economy in the developing countries. FDI is certainly the best investment policy in market when compared to the other reforms of finance since it does generate and debt, non-volatile and the benefits are dependent on the performance of project invested by the investors. With the implementation of new policy in 1991 (LPG) and other reforms policies, India has seen a growth in the investment and outflow of FDI into the nation. This was to a large extent due to the modification and dismission of trade opposing policies.[4] Through economic liberalisation in India had taken its roots from the late 1970s, economic reforms in India have only started after 1991, the reforms which have opened up in 1991 have pushed the economy from the government control, government monopoly to the private sectors of the economy growth. The license raj is a constraint in the past, inspite of the slow down of the economy globally due to global crisis in 2008-2009 India had shown up a growth of nearly 6.7%. According to the Asian development banks Asia capital market report the Indian economy was grown as a third largest after the China and Hongkong in the growing Asian markets, with a market capitalisation of nearly US$ 600 million.[3,4] Investment Environment: Although Indias foreign investment policy gives access to hundred percent FDI in most sectors, India till now has not attained its growth as an FDI destination to its maximum extent. The governments efforts in maximising the FDI investments are not up to the mark because of the flows with in the government like corruption, bureaucracy, and importantly the drawbacks in the needed infrastructure. India is known for its different operating ways which differ from state to state.[3,5] Important reforms in the investments concerned issues; mainly the foreign investment was delayed in the last few years mainly because of UPAs dependence on Indias communist party for the agreement in the parliament. The end of this agreement in 2008 brought into existence only a small set of reforms. For example, in February, the government implemented modifications that opened channels for FDI inflow like the insurance, telecom and retail. The governments decision did not change any of the FDI capitals but it had given a chance to invest in these sectors beyond the limit but it should be taken place indirectly. Once major fore seeing, is that UPA government, which has been rejected without any support of the Indias main left list parties, will now utilize its power to step forward in implementing more economic and investment reforms, many of which are anticipated to provide chances to foreign investors. [5,1] Reforms are showing a growth with a normal place as a result of the global crisis and the diversity of views on the issues, even with the congress party itself. Plans to improve the tax system, create a self dependent debt management system and to a small extent privatisation of government owned firms are being taken into consideration and are proposal. Recent performance: There was a growth of 6.2% y/y in the GDP for Q2-09 (through it is less than the predicted one) with an increase of 5.8% in Q1-09. Grown was reduced to 7.4% for 2008 and is expected to continue the same pattern for the next few quarters. Growth in the first half of the year came on the side of high government prediction spending and stimulus spending. But less monsoon rainfall this year will reduce growth aspects. Industrial growth in the production is at 10.4% y/y in August at a tremendous state since October 2007, largely on the side of government mode of operation and inventory backing.[5,7,9] Fiscal Policy: The budget for the FY09/10 coming year is estimated that the reduction of the deflect to 6.8% of GDP from 6.0% the last year and the tax revenues getting worsened to 10.9% of GDP from 11.6%. Total investment of the central government is to grown to 17.4% of GDP on the things due to increased subsidies and for providing more opportunities on welfare and employment programs especially in rural areas to increase demand and growth trajectory. The period given to small farmers to repay their dues under the debt waiver and debt cancellation schemes has been increased up to the year end. More money is expected to be deposited into the National Rural Employment Guarantee scheme which gives assurance that each rural family works 100days on public sector projects. Fiscal consolidation is to be given up for small term improvement and is to be gained in the medium long term. The budget does not include important reforms which are significant for private business and foreign investment.[1,3 5] Monetary Policy: The Reserve Bank of India is likely to take the control of more monetary losses since October 2008 and to hold the repo rate as well as the reverse repo rate at 47.5% and 3.25% respectively in tis October meeting. The case reverse necessity can be increased once the liquidity conditions have become better. Lower policy rates are step by step converting into lower commercial rank landing rates, but the business is being more careful about the giving and taking. Large energy prices earlier in 2008 had pushed the government to maximize retail fuel prices, making the Wholesale Price Induse(WPI), the RBIs target indicator for inflation, nearly to 12% in July 2008. The external sector: 2008 saw maximum trade downfalls due to the increase in the oil prices. At the same time the plunge in the commodity prices failed to make it a substantial current account profits in 2008 due to negative export performance and value of rupee decreased to a maximum extent. The considerable reduction in imports in 2009 motivated to an growth in the current account deflect in Q1-09 after a large extent of downfall in the last three quarters of 2008. The overall Balance of Payment(BOP) figures for H1-08 showed a addition; but by H2-08 it became a negative.[6,1,2] H1-09 BOP balance is now once again in showing improvement due to a firming on the capital account side but the current account side was worsened in Q2-09. Foreign reserves, though are of considerable amounts have been tightened in the past months, but have raised again in July up to USD 261 billion and showing over 9.4% months of current account debit cover. The external debt is a tiny one at 18.7% of GDP providing a solution. The rupee value dropping in 2008, have brought loss of 20.7% against the USD, but in 2009 it coped up when compared to the lost value worth.[1,2] Changes of Policies in 1991: In July 1991, India has observed some important reforms comprising of certain de-reputation of industrial sector as well as liberalisation of FDI and imports. The important conditions taken in this policy alternation were: Cancellation of industrial licensing in all organisations with exceptions like security-concerned and strategic areas. Enhancement of capacity facilitates the market necessities for the running industries. Nullify the rules on investments by MRTP and FERA industries. Approving normally for foreign investment below or equal to fifty one percent of the equity under consideration of high technology and high investment priority industries and liberalisation of capital market. While implementing the practice of mixed economy would continue, the new economic policies had placed a few hard alterations in government sector industries. Example: Minimizing the set of industries reserved for government sector from 17 to 8 and by December 2002 the set included only three sectors under the public sector units.[8, 10] Atomic energy Minerals mentioned in the atomic energy order, 1953. Railway transport. The number of fields according to which industrial licensing is necessary is reduced to fifteen, declaration of new policy renewal fund(NRF) in order to handle the worse state sector organisations; for converting them into more independent and accountable, along with which foreign investment upto fifteen percent is allowed without any restrictions and foreign technology allowance for 35 main industries. These types of policy changes had increased the argumentation in India among the supporters of liberalisation policy and one who doesnt support the policy. The argument is still on; however it was later changed slowly with time of almost a decade of policy introduction and the result in the performance was visible. [9,10] CHAPTER 3 FDI in China Introduction: Right from the start of economic policies and begin of foreign capital investment in 1979, China started getting a huge chunk of foreign investment flows. China has become the second largest FDI investment country in the world where United States occupied the first place and China has also secured the biggest host nation among the developing countries. Chinas position as a host nation of FDI can be termed equivalent to the developed country though it is a developing nation with the highest FDI inflow.[17] For twenty years (1979-1999), the actual FDI investments in China from 1979 to 1999 is nearly USD 306 billion, which is equivalent to ten percent of the global investment and thirty percent of the developing countries together. Chinese FDI investment pattern can be studied according to the alterations in the policy reforms- the first phase is from 1979- 1983, second phase is from 1984-1991. In the first phase only the Chinese government has set up four Special Economic Jones(SEZs) in Guangdon and Fujan provinces, and implemented new set of regulations with supporting capabilities for the FDI in these SEZs. Though the amount of FDI investments is limited it is mostly taken place in these SEZs.[17,18] Determination of FDI in China: According to the study FDI is basically categorized into two types: market oriented and export oriented FDI. According to the market oriented type of FDI the driving factors for promoting the FDI investments is the size and growth of the host nation. The export oriented FDI on the other hand mainly concentrated on the wealth competitiveness. There are some of the features which support both FDI which China is said to have are mentioned below.[17] Size and growth of the Chinese economy and policies. Distribution of FDI in China in the sectors of natural and sect oral and geographical. Human resource capabilities like cost and quality of labour. Infrastructure interms of physical, economical and technology. Willingness to trade internationally and its channels to foreign markets. Introduction of regularity principals and economic policy coherence. Investment security and promotion. Capital Availability: By the early 2000s, China had outnumbered United States with a more number of investments globally. FDI is a technique in which a non-local investor is interested investing in a local location. The investments of FDI into China can be counted on the basis of the global capital markets presence at that time and normal economic environment at that particular time. [13] A challenging global economy, capital markets and business situation at that time implement options of creating huge chuncks of investment capital that exceeds the amount of good ideas of local investment can result in the institutional, organisational and individual investors to invest in the growing and developing markets of the world. Competitiveness: Chinas welcoming nature as a perfect host of foreign investment capital lies on its enhancement of infrastructure, resource opportunities like(physical and labour), quality and working abilities and the development of the managerial vale chain. The high degree obviously make China as a perfect host of FDI when compared to other countries, like India which strive for its success in attaining the same investment capital. A growing and developing nation requires good standards of infrastructure and resources in order to promote its sale of goods and services. [13] Less transaction charges, due to the good standard of the aspects, helps investors to earn returns on these investments as their organisations are able to make benefits roads, highways, bridges and other ways of physical infrastructure, must be present runned and should be more secure for the transportation of the goods and also for the commutation of the workers. Another aspect for being a perfect FDI involves the availability of desired labour, who have the required aptitudes, experience and perfectness to create , manufacture and provide goods and services that can be seleld in the growing markets. Regulatory environment: When a national government acts into scene by implementing rules and policies with an objective at favouring state entities at the cost of privately running firms, such an environment can be detrimental to initiatives that aim to attract FDI. Like these, the regulatory environment can enhance or become a downfall fro the foreign direct investment for China. Large amount of regulations tend to show the entrepreneur and commercial activities, as the management and labour must spend more quality of time to carry on with these rules and regulations. If an investor wants to start a manufacturing facility in China, excessive start up costs, loyal exposure and other difficulty compliance items may implement that investor to set up the facility anywhere the environment is more complaint to the industry. Other types of regulations which are must the compulsory joint venture partnership in which, along with the foreign investors, the state entity or local entity or local industry as a partner. A well established judicial system is favoured for the perfect FDI host. If a judicial system is centralized towards the locals who some time wants to practice some unfair, unethical and illegal means of business opuurtunities will also contribute to making China as a less choose destination.[17] Another regulatory technique which supports for a favourable investment is the governments implementation of investment activities by providing alluring financial breaks like the tax breaks, grants, cheap government promoters financial services then it can be more effective in enhancing the making of a business more benefitiable and within a short span of time. Stability: Political and economic stability can improve the state of the on flows of FDI. Stability means estimation of future and giving opportunities for organisations to attain better understanding of future markets. On the other hand constant social turnover are the constraints which are not favourable for a good progress of the investments. Economic instability can lead to the depreciation of the currency value due to hyper inflation. To promote FDI, natives/works as well as trading should have a considerable amount of respect towards Chinese low end rates. Violence, underground criminal running, blackmail, kidnaps and duplicate currency and products have all been the flaws in China that serve to reduce the efficiency of conducting trade activities. The justice system should also follow best practices for eradication and elimination of these unfaithful activities for a better investment opportunities.[17,18] Local Chinese market and business climate: The most shining feature of China is the large size of its population and market, and the aspects of growth result from this size. The ability of organisations- backed by foreign investment to sell to a considerable amount of local market makes China as an attractive destination for FDI. As the Chinese economy is showing a tremendous growth, high end industries, engineering, robotics, and luxury goods among others can step into Chinese market as a large scale investors because of its perfect local conditions, resources and other FDI chances are enhanced growth and FDI can begin a success domino effect. The more foreign investment in the regions the more will be its growth. If the growth of a particular location is in a good progress to more investors will be willing to make FDI inflows. This point gains the benefits of the Chinas sizeable market, which represents growth oppurtuniteis in the present and growing commercial business. The higher the FDI inflows into the nation, the more the economic growth, forming a cycle of economic growth.[14,18] Openness to regional and international trade: Open nature of the business market helps in enhancing the promotion of FDI hosts. The main important thing to be taken into consideration is the business capability to promote its products and services to both local and international markets. Is the Chinese based organisations have restricted or less trading activities to foreign customers to be taken into consideration the United States, Western Europe, Japan and others tehn the local market may not able to accomplish a single investment in money and energy. Trade restrictions such as tariffs are genrally considered as less motivated options by other nations. An American product which is having high price while being marketed in China is of no demand in the local market due to the unnaturally raised price, such actions normally rise the tariffs of such local Chinese product in contrast with the US products and in certain cases, an outright ban on certain goods and services.[15] Export-friendly policies, normally will play a major role in determining whether to invest in China, especially for organisation which have large chuncks of investments in other local markets. For enhancing economic policies and growth, it is necessary to initiate business-friendly system, and international free trade agreements are needed to be implemented by market developing governments. The impact of FDI on Chinas international trade: Right from 1980, Chinas foreign trade has shown an tremendous growth. In the period of 1980 and 1998, its share in the world trade has rised to three percent from the base value of one percent. The Chinas economy free flowness can be measured by the ratio of foreign trade to GDP addition from twelve percent to thirty four percent. It is evident that the FDI has been the main aspect which enhanced the improved Chinas entrance in the international sector of the production process known as globalisation. The conclusions can be derived from the below state empirical evidences. Chinas comparative advantages: As estimated by economic theory, Chinas main structural strengths in international trade have been focused in a small definitive number of labour intensive manufacturing products leather and shoes, dress materials and some other manufactured products (like, sports items, toys). Its main structural drawback lies in investment and technology intensive goods; machinery, turbines, textile raw materials and plastics. Ten sectors in which China had excelled had resulted in a total of sixty eight percent of Chinas exports and ten sectors in which China has fallbacks resulted in a total of 42 percent of Chinese imports.[15] This present a brief about the differences that exist in policy making with Chinas foreign trading partners ( the EU-15, the United States, Japan) and the four developing individualized economies (Hong-Kong, Taiwan, south Korea and Singapore) and the presence of big inter-sectarian complementary. In the same channel, China had an excellent net export in the labour based products both in its business with Asia and the rest of the world. Chinas specialisation policies have never been introduced. Its excellence in some of the more basic sectors (clothing and knitwear, carpets) was turned off in the nineties, while new comparative benefits evolved and other were vanished. In particular China had introduced new comparative benefits in computer tools, consumer electronics and electrical appliances and home used electrical apparatus though there was excellent growth in exports. At that moment it had given up its comparative benefit in three sectors, out of which crude and refined oil are same. These turnovers in the specialisation also emerged the Chinas position in world trade. While in 1997 China still continued to hold the biggest market chuncks in the most tremendously growing world markets like tele communication devices, computer devices and electrical appliances and tools. [17] A Comparatative analysis China and India in a context of composition of GDP: There is scepticism about the China that has the business structure of a developing nation. The inter sectored business specialisations were more strongly established when compared to other developing Asian nations. This can be credited to the Chinas wide extent and big resources of cheap labour which helps it in having a continuous enlargement of labour specific exports. The Analysis of the IMPACT of FDI on Chinas structure: Chinas policy is so attain export-related FDI which is interested in its enhancement has gained a excellent success. It has allowed it to construct on international level of manufacturing sector, which is highly capable to meet the world markets. There was no effect on this export-related and impo