2005 Population Rank Country (millions) 1 China 1,304 2 India 1,104 3 United States 296 4 Indonesia 222 5 Brazil 184 6 Pakistan 162 7 Bangladesh 144 8 Russia 143 9 Nigeria 132 10 Japan 128 2005 Population Growth Rate 1 China 0.58 2 India 1.46 3 United States 0.97 4 Indonesia 1.16 5 Brazil 1.26 6 Pakistan 1.84 7 Bangladesh 1.67 8 Russia -0.51 9 Nigeria 2.27 10 Japan -0.02 In 2006, China’s FDI outflows grew 32% to 16.1billion; the inflow was totaled at 69.5billion. Foreign Direct Investment (FDI) Categories of FDI Target- This is the direct investment in new facilities or the expansion of existing facilities. Horizontal- Occurs when the multinational undertakes the same production activities in multiple countries. Vertical- Occurs when the multinational acquires a stake in a foreign firm that either uses its output or provides its input. The primary activity of the foreign firm usually precedes or succeeds that of the parent company. Backward Vertical- Is an investment in a firm whose industry output provides the input for the parent company’s operations. Forward Vertical- Is where an industry abroad sells the outputs of a firm’s domestic production, or uses the firm’s output as input. Motive- FDI can also be categorized based on the motive behind the investment from the perspective of the investing firm. Resource-Seeking- Investments which seek to acquire factors of production that is more efficient than those obtainable in the home economy of the firm. Market-Seeking- Investments which aim at either penetrating new markets or maintaining existing ones. FDI of this kind are most commonly used as a defensive strategy. Efficiency-Seeking- Investments which firms hope will increase their efficiency by exploiting the benefits of economies of scale and scope. Strategic-Asset-Seeking- A tactical investment to prevent the gain of resource to a competitor. References ATKearny. (2004). The Global Business Policy Council. Retrieved...