The aim of this paper is to outline how the rise of China is re-shaping the business environment for multi-national enterprises (MNEs) and how this is affecting their businesses. The aggrandisement of China to become the second-largest economy in the world occurred already in 2010 and this year it has been estimated that the People’s Republic of China will outrun the United States of America as the biggest manufacturer (Hout and Ghemawat, 2010, p.95). Due to their economic power, the Chinese government is also gaining more political power, which shows the willingness of China to contribute to the Eurozone’s bailout fund (Anderlini, 2011a). Moreover, this shows the significance China has as an economic region for the MNEs. Although the initial approach was primarily to get access to low-wages labour in order to economise the manufacturer cost, this has recently experienced an enormous turnaround. Many enterprises no longer just seek the advantages of low-labour cost in China, but to a greater extent MNEs emphasise the “purchasing power [which] continues to increase [and so] their population is becoming important consumer markets as well” (Cavusgil, Ghauri and Agarwal, 2002, p.2). At the same time China has been undergoing a movement towards a new stage of development. A shifting from a successful low- and middle-tech manufacturing economy to a sophisticated high-tech one has been seen and, as Hout and Ghemawat put it, this has been achieved “by cajoling, co-opting and often coercing Western and Japanese businesses” (2010, p.96). Even though China seems to offer a great opportunity for MNEs to produce and to sell their products, still the MNEs are facing huge challenges due to the provisions of national law.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- GLOBAL ECONOMY
- THE RISE OF CHINA
- CHINA IS RE-SHAPING THE BUSINESS ENVIRONEMNT FOR MNES
- HOW MNES COPE WITH CHINESE REGULATIONS.
- CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the impact of China's economic rise on the business environment of multinational enterprises (MNEs), focusing on how this affects their operations. It examines the factors that contribute to China's transformation from a low-tech manufacturing economy to a high-tech one and explores the challenges and opportunities for MNEs in this evolving landscape.
- The rise of China as a global economic power
- The impact of China's economic growth on MNEs
- China's shift from a low-tech to a high-tech manufacturing economy
- The challenges and opportunities for MNEs in the Chinese business environment
- The role of government policies and regulations in shaping the business environment
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the paper's objective to analyze the impact of China's economic rise on MNEs. It highlights China's emergence as the second-largest economy and its potential to surpass the United States in manufacturing.
- Global Economy: This chapter discusses the process of globalization, its impact on emerging markets, and its influence on the shifting of markets and production. It emphasizes the significance of free trade agreements and the integration of financial markets in driving globalization.
- The Rise of China: This chapter explores China's economic miracle, tracing its origins to market-oriented reforms initiated in 1978. It highlights China's shift from a low-tech to a high-tech manufacturing economy and analyzes factors contributing to its economic success, including its low-wage labor and undervalued currency.
- China is Re-Shaping the Business Environment for MNEs: This chapter focuses on the impact of China's economic growth on the business environment for MNEs. It discusses the challenges and opportunities that MNEs face in China, including the need to adapt to changing regulations and competition from domestic Chinese companies.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this paper include: globalization, multinational enterprises (MNEs), China's economic rise, manufacturing, low-tech and high-tech economies, government regulations, market-oriented reforms, business environment, challenges and opportunities for MNEs.
- Quote paper
- Sebastian Kress (Author), 2011, Assess how the rise of China is re-shaping the business environment for MNEs., Munich, GRIN Verlag, https://www.grin.com/document/181660
