Russia vs. China: FDI Analysis for Energy Company Essay -- Social Risks

IntroductionA guild that is considering investing internationally has to evaluate some important factors that are polar in choosing the right country. In order to choose the best determination a businessperson has to analyze economic, political, geographical and social factors before accounting entry a new market. This paper will analyze two countries exploitation a fictive sample of Energy Company based in US. This private gild wants to enter to a new market in one of the BRIC countries located in Europe or Asia. The ability partnership wants to build ECO power plants (environmental friendly) and introduce a new concept of sustainable energy source to these two countries (Russia and China). Hydropower, Wind power and solar energy should be used to generate the electricity. The capital investment is quite risque in order to build new power plants, but the intention of the company is to become a big competition for already quick companies in this industry. The major advant age of this energy company is that they produce electricity for a fair price and do not pollute the environment. The company wants to build a chain of ECO power plants in one of these countries and puff to other markets outside the US. Social risks and benefitsRussia and China are countries with large population. These states work to BRIC group, which are countries with fast developing economy. Both are very piquant destinations for foreign direct investments that can benefit whole country. Despite of the prosperity a huge amount of the population live below the privation line and lack basic needs or education. The average honorarium in these countries are very unstable because they vary from region to region. eon average wages in China are rising those in Russia are ... .... The macrocosm Factbook. Retrieved November 24, 2013, from https//www.cia.gov/library/publications/the-world-factbook/geos/ch.html Central Intelligence Agency (2013). The military personnel Factbook. R etrieved November 24, 2013, from https//www.cia.gov/library/publications/the-world-factbook/geos/rs.html Graham, E. M., Wada, E. (2001). Foreign Direct Investment in China effects on Growth and Economic Performance. Retrieved November 24, 2013, from Peterson Institutefor International Economics website http//www.iie.com/publications/wp/01-3.pdfThe World Bank (2013). Doing Business in China - World Bank Group. Retrieved November 24, 2013, from http//www.doingbusiness.org/ info/exploreeconomies/china/The World Bank (2013). Doing Business in Russian alliance - World Bank Group.Retrieved November 24, 2013, from http//www.doingbusiness.org/data/exploreeconomies/Russia