Essays on Risk Analysis of China Case Study

Download full paperFile format: .doc, available for editing

The paper 'Risk Analysis of China" is a good example of a marketing case study. Studies reveal that China is the modern production hub of the world. In this regard, China accounts for the highest percentage of production processes compared to other world countries. Factors that favor China’ s rapid growth in the production industry include accessibility to affordable raw materials, and adequacy of cheap work-force (Szamosszegi & Kyle 2011, p. 10). These factors attract foreign companies that focus on minimizing production costs and maximizing profits. However, it is important for any company seeking to invest in China to conduct a contextual risk analysis.

By conducting a risk analysis of China, the company identifies different factors that are imperative in determining its success-ability, competitiveness and performance (Zhu, 2012, p. 124). This paper presents a risk analysis report of China by considering key international business environment aspects. The aspects will include but not limited to economic prospects, cultural practices, legal frameworks, ethical practices, political structure and environmental surroundings. Thereafter, the report will provide analytical findings, evaluations and recommendations that are important in making appropriate decisions before investing in China. Introduction Business risk analysis is a key undertaking in every multinational business enterprise.

In line with new trade theory, the business analysis provides an appropriate scale of determining the essence of available opportunities against the prevailing operational threats (Ayyub 2014, p. 24). In this regard, China is an emerging market characterized by accessibility to raw materials, availability of cheap labor and availability of consumers, among other factors (Zhou & Poppo 2010, p. 861). These factors prompt many multinational companies nowadays to transfer their operations to China. Morschett, Schramm-Klein & Swoboda (2010, p. 76) explain that companies need to focus first on determining China’ s market risks that can affect the companies’ competencies and competitive advantages (Ayyub 2014, p. 54).


Ayyub, BM 2014, Risk analysis in engineering and economics, CRC Press, Boca Raton, FL.

Chen, S, Sun, SY & Wu, D 2010, ‘Client importance, institutional improvements, and audit quality in China: An office and individual auditor level analysis,’ The Accounting Review, vol. 85, no. 1, pp. 127-158.

Firth, M, Mo, PL & Wong, RM 2012, ‘Auditors’ Organizational Form, Legal Liability, and Reporting Conservatism: Evidence from China,’ Contemporary Accounting Research, vol. 29, no. 1, pp. 57-93.

Guthrie, D 2012, China and globalization: the social, economic and political transformation of Chinese society, Routledge, New York, NY.

Hering, L & Poncet, S 2010, ‘Market access and individual wages: Evidence from China,’ The Review of Economics and Statistics, vol. 92, no. 1, pp. 145-159.

Kotabe, M, Jiang, CX & Murray, JY 2011, ‘Managerial ties, knowledge acquisition, realized absorptive capacity and new product market performance of emerging multinational companies: A case of China,’ Journal of World Business, vol. 46, no. 2, pp. 166-176.

Li, L 2011, ‘Performing bribery in China: Guanxi-practice, corruption with a human face,’ Journal of Contemporary China, vol. 20, no. 68, pp. 1-20.

Li, L 2012, ‘Effects of enterprise technology on supply chain collaboration: analysis of China-linked supply chain,’ Enterprise Information Systems, vol. 6, no. 1, pp. 55-77.

Liu, S 2011, ‘Lawyers, state officials and significant others: symbiotic exchange in the Chinese legal services market,’ The China Quarterly, vol. 206, pp. 276-293.

Logan, J (Ed.) 2011, The new Chinese city: globalization and market reform (Vol. 52), John Wiley & Sons, Hoboken, NJ.

Long, HL & Woods, M 2011, ‘Rural restructuring under globalization in eastern coastal China: What can be learned from Wales,’ Journal of Rural and Community Development, vol. 6, no. 1, pp. 70-94.

Luo, Y, Xue, Q & Han, B 2010, ‘How emerging market governments promote outward FDI: Experience from China,’ Journal of World Business, vol. 45, no. 1, pp. 68-79.

Morschett, D, Schramm-Klein, H & Swoboda, B 2010, ‘Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?’ Journal of International Management, vol. 16, no. 1, pp. 60-77.

Park, YC 2011, ‘The role of macroprudential policy for financial stability in East Asia’s emerging economies,’ ADBI Working Paper Series no. 284, pp. 1-24.

Shen, A, Antonopoulos, GA & Von Lampe, K 2010, ‘The Dragon Breathes Smoke; Cigarette Counterfeiting in the People's Republic of China,’ British Journal of Criminology, vol. 50, no. 2, pp. 239-258.

Szamosszegi, A & Kyle, C 2011, ‘An analysis of state-owned enterprises and state capitalism in China,’ US-China Economic and Security Review Commission, pp. 1-105.

Trappey, CV, Wu, HY, Taghaboni-Dutta, F & Trappey, AJ 2011, ‘Using patent data for technology forecasting: China RFID patent analysis,’ Advanced Engineering Informatics, vol. 25, no. 1, pp. 53-64.

Yang, DT, Chen, VW & Monarch, R 2010, ‘Rising Wages: Has China Lost Its Global Labor Advantage?’ Pacific Economic Review, vo. 15, no. 4, pp. 482-504.

Zhou, KZ & Poppo, L 2010, ‘Exchange hazards, relational reliability, and contracts in China: The contingent role of legal enforceability,’ Journal of International Business Studies, vol. 41, no. 5, pp. 861-881.

Zhu, X 2012, ‘Understanding China’s Growth: Past, Present, and Future (Digest Summary),’ Journal of Economic Perspectives, vol. 26, no. 4, pp. 103-124.

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