The paper "International Business Environment - China" is a perfect example of a business case study. Perhaps no investment opportunity in the world has captured the minds of foreign investors in the last two decades more than opportunities in china. While there has been buzz about the investment opportunities in China, there are understandable and undeniable facts that explain the buzz and attention. China is not only home to 20% of the world population (1.35 billion people), but also the second-largest economy in the world as well. There has been urbanization in China, roughly half of the Chinese population live and work in cities.
Cities are developing and increasing rapidly, this is increasing growth in infrastructure, services and commerce. Urbanization creates a lot of opportunities. Despite the obvious opportunities in the China market, there are several challenges and risks facing investors willing to invest in this market. China has a communist form of government. The government controls all sectors in the economy, this presents a challenge due to bureaucracy and favourism. This report provides a critical evaluation of the Chinese market.
The report provides the opportunities available for this company, the report also provides a discussion of the risks and challenges that the company is likely to face in venturing into this market. Conversely, the report evaluates the critical aspects of the international business environment such as political, legal, cultural, foreign direct investment, economic prospects, ethical practices, stability and investment climate. Introduction The foreign markets present a good investment opportunity due to various factors such as low tax rate, low cost of capital, high rate of return, stable political and legal system, growing and promising economy and many other reasons.
Nevertheless, it is very important to analyse the risks that may arise in a foreign country before placing a portfolio. The first process in investing in a foreign country is evaluating the country's risks that may affect the investment. These risks determine if it is wise or not to invest in the country. This report provides an evaluation of various risks in China to determine if it is wise to set up a manufacturing and marketing plant.
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