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Current issue of Eur and Global economy whole.docx
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  • In order to attract more investment into production of medium-tech and high-tech goods, China decided to:

  1. Increase governmental spending on research and development( up 10 1.83% of GDP)

  2. Expand education to the whole population à expand higher education à improve quality of teaching + send a lot of students to study abroad.

Made by Chinese”

  • Government is trying to reduce the extend to which they rely on foreign technology - “National Medium to Long-term plan for the development of Science and Technology”

Would China be #1 (Nominal vs Real terms)

Threats for foreign companies entering China’s market

  • Dealing with government

  • Cultural differences

  • Political regime

China as FDI exporter

Chances to overtake US

Reasons for outsourcing: Outsourcing World Summit

Reasons for outsourcing: Data Center outsourcing survey by ESJ.com

Useful links

Offshoring - http://businesssrilanka.com/Articles6.aspx

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