International Comparative Analysis Of Foreign Direct Investment's Environnement

China has been the most successful developing country in this modern era of globalization and has become one of the leader emerging markets in the world. China has grown at a higher rate benefiting from higher Foreign Direct Investment (FDI), comparing to some other emerging countries that have not been able to attract as much FDI and grow that efficiently. Why emerging countries worry so much about FDI? This research studies the importance of FDI for the developing countries, its'impact on their economies and the intake from FDI for the host countries to answer the above question. What's the investment environment in Tunisia comparing to that in China? What has been China's strategy to become the most FDI attracting country in the world? What lessons can Tunisia learn from China to improve its FDI inflow? The study attempts to theorize what lessons emerging markets such as Tunisia, can learn from leader countries in attracting FDI, such as China.This study fills the gap in literature by analyzing the Chinese current environmental situation for attracting FDI and trying to compare it at four levels to that in as small country as Tunisia; political environment, economic environment, social environment, and technical environment. By all means China had succeeded in developing a very hospitable climate to FDI's expansion and multitude differences between each two environments were present. Through a survey on China's foreign direct investment we can better understand the current position of China in the World Market, and its'considerable success even through the economic crisis. At a more compact level, I analyzed the case of Tianjin, one of china's most successful economic zones, through an investigation around Tianjin's Industrial Parks (IP). Turns out, Tianjin is attracting more FDI to its'industrial parks than Tunisia does to its'whole country.Tunisia has grown due to its'human capital, hospitable climate for tourism and political stability. For China, congenial business climate factors comprising of making structural changes, creating strategic infrastructure at SEZ's (Special Economic Zone), and taking strategic policy initiatives of providing economic freedom, opening up its economy, following a pragmatic government financing strategies, and creating flexible labor laws were identified as drivers for attracting FDI. This study might help other developing countries such as the MENA (Middle East and North Africa) which will follow the economic growth, want to grow, to broaden their understanding and formulate policies to attract FDI. At the enterprise level, it might help Transnational Corporations (TNC) in understanding markets and formulating entry and growth strategies in these markets.