Report on International Business: Doc

Added on -2020-02-24

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International Business 1Country Analysis for the International Business across Border
International Business 2ContentsIntroduction.............................................................................................................................................3Rationale for the selection of China for the FDI..................................................................................3Macro Environmental Analysis of China for the FDI..........................................................................4Analysis of Potentials and growth opportunities for the FDI in China.................................................8Conclusion and Recommendations........................................................................................................10References.................................................................................................................................................12Appendices................................................................................................................................................14Appendix 1............................................................................................................................................14Appendix 2............................................................................................................................................15Appendix 3............................................................................................................................................15Appendix 4............................................................................................................................................16Appendix 5............................................................................................................................................16Appendix 6............................................................................................................................................17Appendix 7............................................................................................................................................17
International Business 3IntroductionThis report is aimed at performing the country analysis and analysis of new market trends where the rapid GDP growth has created the attractive foreign investment opportunities to the global business firms. This report will describe the country analysis of China country for the international businesses across the borders (Hill, 2011). Rationale for the selection of China for the FDIThe main reason behind selecting China for the foreign investment opportunities is that China is one of the fastest growing economies in the world because of the large population base, high economies of scale, and high developed markets that attract the foreign investors for the foreign direct investment. It is also expected that China is becoming the foremost economic superpower in the world by 2020. The factors, like capital availability, resource availability (physical and labor), competitiveness of the industries, regulatory environment, political and economic stability, openness to the international and regional trades, supportive business climate and foreign trade policies support the FDI in China(Keilor and Kannan, 2011). The Chinese markets are high-growth potential markets that provide the wide range of business opportunities to the overseas firms to expand the market share through the globalization of the businesses by entering into the Chinese market in order to enhance the sales volumes, clientele and profitability. Along with this, there are lesser risks, low possibility of political instability, favorable economic conditions, resource advantage, availability of land, labor and technologies, low socio-cultural differences, low taxation, government support, and adequate infrastructural development that support the foreign direct investment by the overseas firms. (Harrison, 2013).
International Business 4Macro Environmental Analysis of China for the FDI (Source: Macro Environmental Analysis for FDI in China)The macro environmental analysis with the help of Pestle analysis tool will assist in analyzing the impact of the political, legal, technological, socio-cultural, economic, environmental factors on the foreign direct investment operations in China country. The government spending mechanism and legislations will affect the foreign investment operations, processes, and activities of the MNCs into the Chinese market. The Chinese government also supports the foreign investments by the overseas inventors through providing them an adequate infrastructure for the new business development into the Chinese marketplace.

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