The paper "Country Analysis: China and India Assessment" is a good example of a Business assignment. Multinational companies wishing to invest in foreign countries must conduct a comprehensive evaluation of the political, economic, legal, technological, social-cultural, and business environments of those countries because making an informed decision whether to invest in those countries or not. This paper sought to evaluate two lower-cost countries (India and China) to determine the best location to expand the company s manufacturing base. 1. Analysis 2.1`Country Analysis: China China is arguably regarded as the factor of the world.
It accounts for at least 13% of all manufacturing globally and is predicted to overtake the United States as the number one destination for manufacturing (Jiang 2006). The country offers access to cheap labor and low-cost materials, which is increasingly attractive to western manufacturing firm. Western firms can either outsource to China via wholly-owned subsidiaries or contract manufacturers. of their parent western companies. There is a broad range of challenges faced by western companies when it comes to outsourcing their production to China. 2.1.1 Political Challenges For many decades, China has been under the communist party and the party exercises absolute authority and power over legislations as well as cultural and economic institutions.
China's regulations and rules are not absolute and transparent and this is contrary to western economies where their government facilitates and promotes transparency for doing business. Multinational firms wishing to expand their operation in China can increasingly come under a broad range of bureaucracies and regulations (Jayaraman 2009). China advocates and promotes a kind of social network referred to as “ guanxiwang” . The “ guanxi” is the relationship between the entities and individuals of the network.
As a result of corruption and lack of transparency, the social network with individuals from the community party can assist western firms to avoid bureaucracy and red tape.
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