85.3k views
2 votes
Which country has shown a marked increase in FDI inflows since 2004?

a) China
b) Japan
c) India
d) Brazil

1 Answer

0 votes

Final answer:

China has experienced a significant increase in FDI inflows since 2004, becoming a prominent member of the global fast-growth club, driven by investments in capital and technology, alongside India.

Step-by-step explanation:

The country that has shown a marked increase in Foreign Direct Investment (FDI) inflows since 2004 is China. Despite the attractive investment stories each country holds, such as Brazil's returns on U.S. financial investments or Japan's acquisitions of U.S. real estate, it is China's convergence into a high-growth economy alongside India that stands out. This growth is characterized by significant investments in human and physical capital, technological advancements, market forces, progressive government policies, and sometimes fortuitous events.

China, alongside India, has become one of the world's prominent members of the 'fast-growth club,' capturing nearly 40% of the global population and showcasing rapid economic development. This progression has been significantly supported by inflows of FDI, targeting various sectors ranging from manufacturing to technology, which have proved beneficial for its expanding economy. High-income countries, like Japan, have been described as part of the slow-growth club, highlighting their comparatively modest growth rates.

User Lafunamor
by
7.6k points