Foreign Direct Investment In Today's Global Market
President Clinton encountered this problem in the mid-1990s when he considered whether to renew China∆s Most Favored Nation (MFN) trading status with the United States. There was much opposition to this because of the human rights violations that occur in China, and the president was faced with deciding whether or not the withholding of the designation would encourage increased human rights. He eventually permitted the status hoping that China will accomplish change through opening of its markets and increased interaction with Western influences (Maggs, 1994, p. 2A).

The last quarter of this century has seen a rise in regional economic groupings, which are countries linking together for economic benefit. While alliances have played a large role in history, these alliances are based not on military dependency, but on economic benefit. The European Community eliminated many of the barriers to trade for its member nations, and NAFTA did the same for Mexico, Canada and the United States. These, and organizations such as ASEAN and even OPEC (a central component of trade in the Middle East), have changed the complexion of the world economy. No longer are companies concerned with operations in their own and other countries, they must now be concerned with entire regions. There are advantages to marketing to these new groupings, but difficulties as well since the groupings are intended to protect member countries and make it more difficult for foreign companies

 
 
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