Evaluating Risk in China: Does Location Matter?

Prime, Penelope B.
February 2009
Academy of Management Perspectives;Feb2009, Vol. 23 Issue 1, p82
Academic Journal
The article presents a management research brief of the 2008 study "Economic institutions and FDI location choice: Evidence from U.S. multinationals in China," by Julan Du, Yi Lu, and Zhigang Tao, investigating the risk assessment paradigms of foreign direct investments by corporations, particularly in regards to China and questions of geopolitical influences. A review of the methodology and results of the study is given, pointing out trends in U.S. investor behavior such as the positive incentives of more developed legal protections and less government involvement in business.


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