Essays on International Business Environment - China Case Study

Download full paperFile format: .doc, available for editing

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.

References

Aiken, M., Lu, W., & Ji, X. D, 2013, the new accounting standard in China: Perspectives on accounting and finance in China, 159.

Bijian, Z, 2005, China's" peaceful rise" to great-power status: Foreign Affairs, 18-24.

Buckley, P. J., Clegg, L. J., Cross, A. R., Liu, X., Voss, H., & Zheng, P, 2007, The determinants of Chinese outward foreign direct investment: Journal of international business studies, 38(4), 499-518.

Buckley, P. J., Wang, C., & Clegg, J, 2007, the impact of foreign ownership, local ownership and industry characteristics on spillover benefits from foreign direct investment in China: International business review, 16(2), 142-158.

Chen, S., Sun, Z., Tang, S., & Wu, D, 2011, Government intervention and investment efficiency: Evidence from China. Journal of Corporate Finance,17(2), 259-271.

Cheru, F., & Obi, C, 2010, the rise of China and India in Africa: Challenges, opportunities and critical interventions.

De Brauw, A., & Rozelle, S, 2008, Migration and household investment in rural China: China Economic Review, 19(2), 320-335.

Donald, S. H., Hong, Y., & Keane, M, 2014, Media in China: Consumption, content and crisis. Routledge.

Dunning, J. H, 2013, the role of foreign direct investment in a globalising economy: PSL Quarterly Review, 48(193).

Fu, B. J., Zhuang, X. L., Jiang, G. B., Shi, J. B., & Lu, A. Y. H, 2007, Feature: environmental problems and challenges in China; Environmental science & technology, 41(22), 7597-7602.

Fu, X. (2008). Foreign direct investment, absorptive capacity and regional innovation capabilities: evidence from China. Oxford Development Studies,36(1), 89-110.

Fu, X., & Balasubramanyam, V, N, 2005, Exports, foreign direct investment and employment: The case of China. The World Economy, 28(4), 607-625.

Greenaway, D., Guariglia, A., & Yu, Z, 2014, the more the better: Foreign ownership and corporate performance in China: The European Journal of Finance, 20(7-9), 681-702.

Hale, G., & Long, C, 2011, Are there productivity spillovers from foreign direct investment in China?. Pacific Economic Review, 16(2), 135-153.

Hale, G., & Long, C. X, 2006, What determines technological spillovers of foreign direct investment: evidence from China; Economic Growth Center, Yale University.

Haskel, J. E., Pereira, S. C., & Slaughter, M. J, 2007, Does inward foreign direct investment boost the productivity of domestic firms? The Review of Economics and Statistics, 89(3), 482-496.

Heckman, J, J, 2005, China's human capital investment: China Economic Review, 16(1), 50-70.

Hexter, J., & Woetzel, J, 2013, Operation China: From strategy to execution. Harvard Business Press.

Hu, D., & Xu, S, 2013, Opportunity, challenges and policy choices for China on the development of shale gas: Energy Policy, 60, 21-26.

Huang, G. 2006, the determinants of capital structure: evidence from China: China Economic Review, 17(1), 14-36.

Kelley, L., & Shenkar, O, 2013, International business in China: Routledge.

Kothari, T., Kotabe, M., & Murphy, P, 2013, Rules of the game for emerging market multinational companies from China and India: Journal of International Management, 19(3), 276-299.

Kuijs, L, 2005, Investment and saving in China: World Bank Policy Research Paper Series, (3633).

Mathur, A., & Singh, K, 2013, Foreign direct investment, corruption and democracy: Applied Economics, 45(8), 991-1002.

Morck, R., Yeung, B., & Zhao, M, 2008, Perspectives on China's outward foreign direct investment: Journal of International Business Studies, 39(3), 337-350.

Seo, K. K, 2013, Economic Reform and Foreign Direct Investment in China before and after the Tiananmen Square Tragedy: International Business in China, 109-36.

Tang, S., Selvanathan, E. A., & Selvanathan, S, 2008, Foreign direct investment, domestic investment and economic growth in China: A time series analysis. The World Economy, 31(10), 1292-1309.

Thun, E, 2006, Changing lanes in China: Foreign direct investment, local governments, and auto sector development; Cambridge University Press.

Wang, J, 2013, the economic impact of special economic zones: Evidence from Chinese municipalities; Journal of Development Economics, 101, 133-147.

Wei, Y. D, 2014, Regional development in China: states, globalization and inequality. Routledge.

Xing, Y, 2014, China's High-Tech Exports: The Myth and Reality*. Asian Economic Papers, 13(1), 109-123.

Download full paperFile format: .doc, available for editing
Contact Us