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A risky investment on a poor governance environment
It is widely believed that a country with weak laws and severe corruptions would not attract foreign investors. However, statistic shows the opposite way. Most investors would choose complete governance on their indirect investment but when it comes to direct investments, foreigners would prefer to invest in countries that have poor legal system. A poor governance environment attracts foreign direct investment because it has vast market opportunities.
China is perceived and known for its poor governance structure. But despite its poor legal system and rampant corruption, she has still been able to attract huge amounts of foreign direct investment. "In fact, China is one of the largest recipients of foreign direct investment among the world and it's threatening to overtake the number one position from the United States." (Pg. 297). Based on relation-based governance system in China, investors rely on private information......
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Title: A Risky Investment On A Poor Governance Environment
Approximate Word Count: 891
Approximate Pages: 4 (250 words per double-spaced page)
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