Applying concepts Essay Example | Topics and Well Written Essays - 500 words

Applying concepts - Essay Example To address this question, managerial economic concepts and socio-political tools need to be taken into consideration. From the video Can the U.S. Maximize the Benefits of Chinese Foreign Direct Investment? It is evident that Chinese companies operation in United States has proved to be economically beneficial to the locals and the national economic performance at large. The firms like offer employment opportunities to the United States citizens and this has helped reduce unemployment rate with significant boost in overall national income level (Moran,2013). Comparative wage rate between China and United States indicates significant gap with the later having higher rate and more skilled personnel. It is therefore economically feasible to the United States allow Chinese firms operate locally and offer minimum wage rate. This reflects outsourcing of jobs that has seen states like South Carolina boast higher employment level. It is also important to note that United States do not experience exploitation as most of the Chinese firms outsource other factor input from other countries with value creation a ctivity as the central activity in United States. The socio-political framework of the United States is strongly hinged on American way of doing things including workplace practices and that has placed them at vantage point. Take the case of Haier which was compelled to hire an American executive manager in an effort to effect America-style human resource practices. This means that united States have substantial participation in the Chinese foreign direct investment entities hence increased gain to the local economy. United States firms have a competitive edge against other multinationals of foreign origin and for China to penetrate and establish its production plants, there is increased level of productivity and revival of dead industries. The case study of Top-Eastern Group which specializes in making drill bits gives a picture of gains made so far by