How and why did foreign direct investment take place between Portugal and China between 2010-2015?

• Autor(a) principal: Ribeiro, Catarina
• Data de Publicação: 2016
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/13090
• topic: Foreign direct Investment; China; Portugal; Motivations; Entry modes; Relações internacionais; Investimento direto estrangeiro; Motivação empresarial; Ativo financeiro

Foreign direct investment has become an extremely important aspect in generating economic growth around the world. As the largest receiver of FDI up until 2015 and the third largest FDI investor, China becomes a significant country to explore. It becomes interesting to view how China views the rest of the world in terms of investment and how the rest of the world views China’s foreign investment practices. This is the topic covered throughout this study, looking closely at the FDI relationship between Portugal and China in terms of motivations and entry modes by gathering extensive qualitative and quantitative data. Through the research and data gathered, the study found that the main motive for Chinese companies to invest in Portugal was strategic asset seeking. In other words, Chinese companies have been buying out Portuguese companies and gaining knowledge in order to replicate the methods in China. The investment strategy adopted by the majority of large Chinese companies has been Acquisition. On the other hand, Portuguese companies opt to invest in China in order to acquire a new market. These Portuguese companies have been investing in China through Joint Ventures and Strategic Alliances. These conclusions were drawn upon using interviews, questionnaires and quantitative data. This study offers a comprehensive approach to the bilateral relationship and offers further questions for companies interested in investing in the other country. It suggests both countries need to have a deep reciprocal understanding before investing and ensure they have clear objectives when investing.