Business Environment: Comparing China and Canada Report

This report offers a comparative analysis of the business environments in China and Canada. It examines the economies of both nations, considering global, ethical, political, physical, and societal indicators. The report delves into the relationship between the size and growth of these economies and the concepts of capitalism and democracy, exploring factors such as HDI and poverty levels. It also assesses the impact of the internet on both national economies, including its influence on business development and international trade. Furthermore, the report defines capitalism in relation to national political policies and investigates the relationship between economic growth and personal freedom within the two countries. The analysis uses various factors and discusses the impact of different elements in both countries.

Running head: Business environment
Business environment
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Business environment
Table of Contents
Compares and contrasts the local and Chinese economies in terms of using global, ethical,
political, physical, and societal indicators.......................................................................................3
Does the size and growth of the economies of the two nations have any relationship to capitalism
and democracy?...............................................................................................................................3
What is the impact of the Internet on the two national economies?................................................3
How do these nations define capitalism in relation to national political policies?..........................4
Is there a relationship between economic growth and personal freedom with the two nations?.....4
Reference list...................................................................................................................................5

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Compares and contrasts the local and Chinese economies in terms of
using global, ethical, political, physical, and societal indicators.
Taking the global and physical aspects it can be claimed that China is growing and it is
strongly having both the opportunity and comparative advantage in the production of goods
using modern and upgraded technologies. On the other hand, the economies of Canada is not
going have that much of development.
Does the size and growth of the economies of the two nations have any relationship to
capitalism and democracy?
In order to determine the relationship among the capital and democracy along with the
size and growth of the economies it is important to consider some of the important factors such
as HDI, poverty level and many more. Comparing among China and Canada is important in the
sense that it will definitely highlight the characteristics of trade among these two countries. The
growth of china is comparatively bigger than that of Canada because of the fact that through the
development of the population growth, the Chinese economy is blooming in the sense that it is
experiencing huge amount of investment mostly from the companies dealing with heavy
technologies (Bah & Fang, 2015). To the most surprising most of the technologies are more
capital based and less of labour based. In spite of being highly populated country, the Chinese
economy is becoming highly capitalistic in nature and is growing towards the development of a
better democratic system. This is important in the sense that in order to support the democratic
nature, it is important for the government to play a pivotal role. On the other hand, the economy
of Canada is not so vast and is still growing but the people of Canada is living a better standard
of living compared to that of China.
What is the impact of the Internet on the two national economies?
Impact of internet is actually helping most of the developed nations in building the
business in an effective way. Through the development of the business, it is important in the
sense that people should increase the sources of resource allocation. Internet is helping in the
development and spreading of knowledge among any countries and is actually increasing the
quality of the employees. Through the development of the internet national economic giant like
China is using the supply chain management by contacting the sellers in abroad countries. The

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trade is also developing because of the internet in the sense that through the internet countries
that are indulged in international trade are filling up the forms of various customs and other legal
entities that can be resolved using online technologies. Internet actually helps in improving in
identification process of the raw materials that will automatically increase the development of
production of various services (Epifanova, Romanenko, Mosienko, Skvortsova & Kupchinskiy,
2015). Through the use of extensive amount of internet, the employees can learn and exchange
the education level in inter country level. This has high benefit for a country like Canada who
can develop themselves having open and transparent communication with the developed nations
and can implement better methods of training and production mechanisms.
How do these nations define capitalism in relation to national political policies?
In most of the developed nations, the capitalism is defined as the power of the country or
power of the political parties to exploit the poor people living in their country and giving the rich
an opportunity to increase their wealth. Through the development of the better and effective
policies the political parties are giving the businessman opportunities to improve their wealth and
they are becoming friend with the government and in turn they are selecting the policies that the
governments need to take so that they can increase their capital access (Kolk, 2016). In most of
the developed nations, the capitalism or industrialists are exploiting the human resources and
they are incorporating the technological upgradations and laying off the employees.
Is there a relationship between economic growth and personal freedom with the two
nations?
According to some economists, there exists some relationship among the personal
freedom and economic growth. Through the development of economic growth personal freedom
is important to achieve but it is not possible to hold the freedom too long (Prajogo, 2016).
Though at the initial stage the customers will be able to choose the basket of goods but as the
economic growth will be happening the price in the economy will increase leading to inflation
like situations. This will automatically bind the choices of the customers as they will not be able
to highlight their purchasing power.

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Reference list
Bah, E. H., & Fang, L. (2015). Impact of the business environment on output and productivity in
Africa. Journal of Development Economics, 114, 159-171.
Epifanova, T., Romanenko, N., Mosienko, T., Skvortsova, T., & Kupchinskiy, A. (2015).
Modernization of institutional environment of entrepreneurship in Russia for
development of innovation initiative in small business structures. European Research
Studies, 18(3), 137.
Jaakkola, M., Frösén, J., Tikkanen, H., Aspara, J., Vassinen, A., & Parvinen, P. (2016). Is more
capability always beneficial for firm performance? Market orientation, core business
process capabilities and business environment. Journal of Marketing
Management, 32(13-14), 1359-1385.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), 23-
34.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171,
241-249.
You, K., Dal Bianco, S., Lin, Z., & Amankwah-Amoah, J. (2019). Bridging technology divide to
improve business environment: Insights from African nations. Journal of Business
Research, 97, 268-280.