Emerging economies viz., Brazil, China, India, Mexico and South Africa have seen a tremendous increase in the FDI inflows in the last one decade. Amongst all, the FDI inflows of China witnessed sharp rise from 1992. As on 2006, China stood as the worldís second largest recipient of FDI inflows (AT Kearney Report, 2006), leaving behind many emerging economies in the race of attracting FDI inflows.
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