Question: Foreign direct investment (FDI), which involves the transfer of capital, managerial, and technical assets to a foreign country, has surged in recent years. In this discussion, you will analyze a recent foreign direct investment in China.
Read the section "Changes May Influence Future Investments in China" from your textbook (p. 432). Respond to the following:
. Explain the similarities and differences between net present value (NPV), profitability index (PI), and economic value added (EVA).
. Although China has been actively campaigning for foreign investment, how do you think having a communist government affects its foreign investment?
. How can current risk and political risk be minimized when one is making a foreign direct investment?