The Risks of Doing Business in China
attractive market in terms of size and growth rate. Yet China ranks lower in
terms of economic freedom and higher in political risk than do some other
countries. Despite these risks, hundreds of companies have established
manufacturing operations in China.
Assume that you are President of an auto manufacturer
planning to build a $U.S. 800 million plant in China. You are discussing this
project with your good friend who is intelligent, but has no background in
international business. Discuss each of the main risk factors that should be
considered in order to make this decision.
Here is a link to useful information from the World Bank on
the ease of doing business in many different countries:
http://www.doingbusiness.org/documents/Press_Releases_08/DB_08_Oveview_English.pdf
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