Population Size and Foreign Direct Investment Research Paper

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Updated: Jan 21st, 2024

Population Size and Growth Rates

It is a well-known fact that China and India are tow world’s most populated countries with the population sizes that have reached above one billion people. However, not many know the other countries are included in the ten of the states with that largest population. This knowledge is crucial for businesses expanding globally and searching for the largest customer bases. The table below represents the list of the largest populations sorted by countries.

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Country (2015)Population (millions)
China1,372
India1,314
The United States321
Indonesia256
Brazil205
Pakistan199
Nigeria182
Bangladesh160
Russia144
Mexico127

(Population Reference Bureau 2).

As one may see from the numbers presented in the table, the gaps between the population sizes of China and India and the third listed country, the United States is huge and equals about one billion people. That way, no one could be compared to the two giants and absolute leaders in terms of the customer base. It is worth noticing that the average level of income in the developing countries of China and India is significantly lower than that of the United States, one of the world’s richest states. As a result, in terms of buying capacity, the USA may turn out to become a leader. However, as stated in the description of the product, it is anticipated to be equally popular among the populations with all levels of income. Therefore, China and India keep its leading ranks and remain the most outstanding markets in terms of customer base size.

Another set of variables that is crucial for the customer base and market research is the growth rate of the populations of the globe. This data is relevant because the newly developed product is going to be launched all around the world. As a result, the population growth rates represent the increase in the anticipated customer bases. The table below presents the data that reflects the predicted leaders in terms of population sizes by the years of 2050.

Country (2050)Population (millions)
India1,660
China1,366
The United States398
Nigeria397
Indonesia366
Pakistan344
Brazil226
Bangladesh202
Congo, Dem. Rep.194
Ethiopia165

(Population Reference Bureau 2).

The forecasted numbers demonstrate that the two leaders, China and India, will remain at the top of the list but they will exchange their ranks as India’s population is expected to grow at a much rate than that of China. Besides, Nigeria is anticipated to experience quite a rapid population growth which would facilitate its leap from the 8th position to the 4th. Some more changes can be observed at the very bottom of the table where Russia and Mexico are replaced by the Democratic Republic of Congo and Ethiopia, the new participants with some of the largest populations of the globe.

FDI Confidence Index

FDI stands for foreign direct investment. The FDI Index shows the attractiveness of the countries as the targets for the investments from abroad. FDI results in multiple benefits for the host country such as the exchange of new technologies, the addition and allocation of resources, the increase in labor power and opportunities, the integration into the global and international markets, and the overall speed of development and advancement within a country. The table below presents the list of the twenty-five countries that by 2016 were considered as the most attractive destinations for foreign investors.

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CountryFDI Confidence Index
The United States2.10
China2.00
The United Kingdom1.95
Canada1.94
Germany1.89
Brazil1.87
Japan1,80
France1.80
Mexico1.79
Australia1.79
India1.79
Italy1,75
The Netherlands1.74
Switzerland1.74
Singapore1.73
South Korea1.72
Spain1.71
Sweden1.71
Belgium1.70
Denmark1.69
Austria1.69
Turkey1.69
Poland1.68
Norway1.68
Finland1.67

(A.T. Kearney par. 2).

As one may see from the table, the United States is at the very top with the leading rank among the countries that are recognized as the most attractive in terms of foreign investment. The majority of the countries on the list are located in Europe; most are the members of the European Union and are located in the Western part of the area. The East of Europe is represented by Poland and the central part – by Austria. As for the representatives of the other regions, Asia is represented by five states, two are from North America, one from South America, and the 10th position belongs to Australia. Africa and the Middle East are not represented at all. It seems that these areas are deemed not to have pleasurable conditions for the development of business and for the international expansions. Besides, the differences in indexes are minimal; in many cases, several countries in a row show the same level of FDI confidence.

Works Cited

A.T. Kearney. The 2015 A.T. Kearney Foreign Direct Investment Confidence Index. 2016. Web.

Population reference Bureau. 2015. Web.

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IvyPanda. (2024) 'Population Size and Foreign Direct Investment'. 21 January.

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IvyPanda. 2024. "Population Size and Foreign Direct Investment." January 21, 2024. https://ivypanda.com/essays/population-size-and-foreign-direct-investment/.

1. IvyPanda. "Population Size and Foreign Direct Investment." January 21, 2024. https://ivypanda.com/essays/population-size-and-foreign-direct-investment/.


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