To Foreign Direct Investors, China Looks Better Than U.S.

Jan. 13, 2005
By John S. McClenahen In a declining foreign direct investment (FDI) climate, China has overtaken the U.S. as most-attractive destination, suggests the latest annual Foreign Direct Investment Confidence Index -- surveying senior executives of the ...
ByJohn S. McClenahen In a declining foreign direct investment (FDI) climate, China has overtaken the U.S. as most-attractive destination, suggests the latest annual Foreign Direct Investment Confidence Index -- surveying senior executives of the world's largest 1,000 companies -- by management consultancy A.T. Kearney, Plano, Texas. And for the first time, a majority of global investment decision-makers eschew mergers and acquisitions (M&A's) as mode of entry. Only 40% preferred M&A's in 2002, versus 60% in 2001 and 71% in 2000. FDI includes investment in joint ventures, significant stock ownership and/or physical assets -- like plants and equipment -- in a foreign country. 2002's index shows the first broad investor-sentiment decline in five years, says A.T. Kearney. But China -- eliciting increased economic optimism among investors -- bucked the trend, its FDI Confidence Index reaching 1.99 versus last year's second-place 1.69. The U.S. -- besmirched by slow economic recovery, roller-coaster stock market and corporate scandals -- dropped to 1.89 from 2.03. Regionally, Europe dominated, with five nations in the Index's Top 10.

Popular Sponsored Recommendations

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Beat the odds. Optimize product costs. Mitigate supply chain issues.

Sept. 12, 2023
Leverage fact-based supplier negotiations. Enhance design. Get to market faster. Our comprehensive Should Cost Analysis guide shows you how.

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!