In a short essay, compare and contrast China and India in terms of FDI. What makes each nation popular for FDI? What factors contribute to the long-term popularity of FDI in advanced economies, such as Australia and Japan?
What will be an ideal response?
China is popular because of its size, rapid growth rate, and low labor costs. The country is an important platform where MNEs manufacture products for export to key markets in Asia and elsewhere. India is popular because of its highly educated workforce, managerial talent, and relatively fewer cultural barriers. China and India are also attractive for strategic reasons—locations that hold immense long-term potential as target markets and new sources of competitive advantages.
Advanced economies have been popular destinations for FDI because of a number of qualities they have developed and maintained. Qualities that support long-term FDI include a strong GDP per capita, GDP growth rate, density of knowledge workers, and superior business infrastructures, such as telephone systems and energy sources.
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How are profits and losses shared in the absence of a limited partnership agreement?
A) Profits and losses are shared equally among all partners. B) Profits and losses are shared equally among general partners and unequally among limited partners. C) Profits are shared equally among all partners, losses are shared based on the value of each partner's capital contribution. D) Both profits and losses are shared on the basis of the value of each partner's capital contribution.