One of the very main reasons behind the globalization processes in today’s corporate world boils down to the existence of multinational corporations (MNCs) in the way that they organize their activities across borders, which entails “…the ownership of productive assets by a parent corporation in another nation.” (Cypher & Dietz, 2009) and also due to the fact they have the capability to handle and transfer knowledge on a global scale (Forsgreen, 2002). When it comes to foreign direct investment (FDI), developed nations have traditionally been the main investors by far, but recently there has been a shift concerning FDI flows. Developing countries are responsible for a much larger share of these flows nowadays with China being the biggest recipient of FDI but also the nation accounting for the largest outward FDI stock (Cypher & Dietz, 2009). A lot of this Chinese outward FDI stock is directed at resource extractive industries. Access to natural resources is crucial to the maintenance of China’s growth and involves a wide range of private and public sector actors, both domestic and international. Chinese extractive industry and commodity trading enterprises are increasingly important players in Africa’s extractive sectors as they seek resources for not just its domestic market but also for the world markets
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