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).
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