Why Chinese governments stimulate outward FDI Essay

Why Chinese governments stimulate outward FDI - Essay Example China has continued to stimulate outward FDI, with the lifting of restrictions on Chinese firm operations overseas on the new law on foreign exchange. For instance, there is no need to obtain exchange based on a risk assessment. This is expected to increase Chinas Outward FDI. As much as the countries may have difficulties in navigating towards the process, China may opt to go to the developing countries because of initiatives employed by these countries. Recently China is focusing on Africa, to increase the outward FDI since it is currently relatively small than the size of its economy (Ilhà ©u, 2010). There are other top host countries of great interest to china, which include Hong Kong and the Caribbean tax haven. That constantly account for about 70% of the flow. These counties are often used by multinational firms to store wealth as a result of their confidentiality to the foreign investors. Focusing on these countries by Chinese firm may also be one of the ways of hiding wealt h from tax authorities, other authorities or the public shareholders (Morck, et al. 2007). The following are the three features of Chinese macro environment that are likely to connect with the outward FDI surge. High saving rates, Weak corporate governance, distorted capital allocation. As much as outward FDI can let firms gain important economies of scale and scope, the above features could combine to induce excessive outward FDI by the wrong players that would be working with the Chinese long-term economic prospects (Morck, et al. 2007, p 10). Therefore, it is important to understand outward FDI to achieve prosperity. Outward foreign direct investment by the Chinese firms was expected to reach a record of USD 120 billion in 2014. However, the recent liberalization of capital controls has also further complicated the task of recording such outflows accurately. Other data points suggest that the

Project Management and How it Relates to Purchasing and Supply Research Paper - 2

Project Management and How it Relates to Purchasing and Supply Management - Research Paper Example In fact, project management is a profession that most businesses embrace and there is a high possibility that the field will develop over the years. Typically, the general idea behind project management is not different from that of purchasing and supply because the methods, processes and approach applied aim at minimizing the chances of failure or forfeiture. However, there is more to the relationship of the two aspects apart from the common similarities such i.e. they both need professional managers. In purchasing and supply management, the experts engage in the management of the procurement procedures, all those that involve the goods and services (Zigiaris 2000). Definitely, ample management skills apply but the most critical responsibility involves managing the supply chain. This requires negotiations involving the contracts required for the upkeep of an organization’s production sequence. Decisively, a great relationship exists between project management, and purchasing and supply management, not necessarily in terms of the results and goals, but in the essence of knowledge and skills required. Consequently, this research paper focuses on analyzing both factors as a way of establishing the core relationship between the two. Evaluation revolves around aspects such as the concepts of procurement and contract management, RFP selection tools, procurement planning and its legal characteristics. Generally, the discussion entails a comprehensive assessment of these foci as the basis for the argument on the relationship. Obviously, almost all companies use procurement professionals for the purchasing and supply management requiring them to have resources, tips and tools for all modules in the chosen strategies. The common expectations for the procurement professionals entail being able to produce savings, managing contracts effectively, maintaining productive supplier relationships, negotiating and