on discerning consumers to foreign investors. In addition to population, China's consumer market has yet to reach its full potential. Because of continuous consumer demand for new refrigerators, cars, and various material goods, a material-driven economy is beginning to show exuberant signs of life. According to an article by China Daily, "China's gross domestic product (GDP) is predicted to surge to a year-on-year 8 percent in 2002, bolstered mainly by a vigorous private investment binge and robust household consumption in cars and housing"(Through). The article went on to say that "auto sales in the past 10 months chalked up a sharp increase of 50 percent year-on-year. Sales of household electronic appliances like mobile phones, PCs, TV sets and DVD players posted a 62 percent rise in the first three quarters" (Through). This is not just rapid GNP per capita growth. This is exponential growth. Whether the market is services, industrial, or housing 1.2 billion Chinese consumers will keep foreign investors marginally happy for some time to come. To further attract foreign direct investment, efficient infrastructure is also taken into consideration.
             A country must have an efficient infrastructure to allow the free flow of consumers and resources. Transportation costs have to be kept to a minimum for economies of scale and scope to be realized. Looking at a road and railway map of China (See Figures 2&3 Appendix), one sees a highly concentrated network of railways and highways and various international airports stretching across the eastern coastal region. The Organization of Economic Co-Development (OECD) states that "the more highways, railways, and interior waterways are adjusted according to the size of host province(s), the more FDI inflows" (2002 13). The accessibility to a demanding local market is crucial. Jun Fu views infrastructure as a "location-specific economic advantage" (206). More specifically having access to "fast-t...