Country Risk Analysis-China

Essay by DANIMAL69University, Bachelor'sA, May 2007

download word file, 11 pages 4.9

With the development of economic globalization, foreign direct investment (FDI) is increasingly being recognized as an important factor in the economic development of countries. Although FDI began centuries ago, the biggest growth has occurred in recent years. This growth resulted from several factors, particularly the more receptive attitude of governments to investment inflows, the process of privatization, and the growing interdependence of the world economy. Team B will perform a country risk analysis to ensure that endeavors of investing into the Chinese markets are warranted.

Initial ScreeningGreater China has been one of the most dynamic areas in the world economy. With the entry of the China into the World Trade Organization, China's financial markets emerge on the frontier of economic reform and openness. Financial services also provide the most exciting foreign business opportunities in China. However, the recent Asian financial crisis illuminates the problems in China's state-run enterprises and an ill-functioning banking system.

This paper is looking for the business opportunity of financial services industry in China. It will begin from the review of the emerging economies to explain why the specific region was chose. The research of this paper also includes business analysis in China, a review of profitable industry, the business entry strategy and its functional areas operate in China. At the end, the future strategy and the recommendations will be discussed for the further steps in this investment.

Potentials/FDILooking at the environmental factors of China, the economic development it has undergone in the past 15 years is of increasing interest to marketers. It has developed and continues to grow into a great trading partner. If this growth pattern continues, China will someday have significant economic influence on the world. One reason China could have a particularly large effect is due to the number of Chinese citizens. China...