With the domestic consumption expanding fast, experts predict enormous market growth in China over the next decade. In our practice, we have seen a growing trend for exports to China by small to medium-sized companies in the Midwest. We are frequently called upon to answer the legal questions arising in the process of distributing goods in China. Our China Law Brief provides a summary of eight key issues that we consider to be of most importance.
Pondent - Updated November 02, The political environment in a country affects business organizations and could introduce a risk factor that could cause them to suffer a loss. The political environment could change as a result of the actions and policies of governments at all levels, from the local level to the federal level.
Businesses must plan for the variability of government policy and regulations. Impact on the Economy The political environment in a country affects its economic environment. The economic environment, in turn, affects the performance of a business organization.
In the United States, for instance, there are significant differences in Democratic and Republican policies.
A higher level of government spending tends to stimulate the economy, for instance. Changes in Regulation Governments could change their rules and regulations, which could have an effect on a business.
For instance, after the accounting scandals of the early twenty-first century, the United States Securities and Exchange Commission became more focused on corporate compliance and the government introduced the Sarbanes-Oxley compliance regulations of This was a response to the social environment that called for such change to make public companies more accountable.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Political Stability Particularly for businesses that operate internationally, a lack of political stability in any country has an effect on operations.
A hostile takeover could overthrow a government, for instance. This could lead to rioting and looting and general disorder, which disrupts the operations of a business. Such disruptions have occurred in Sri Lanka, which went through a protracted civil war, and in Egypt and Syria, which have been subject to disturbances as people agitate for greater rights.
Mitigation of Risk One way to manage political risk is to buy political risk insurance. Organizations that have international operations use this type of insurance to mitigate their risk exposure as a result of political instability.
There are indices that provide an idea of the risk exposure an organization has in certain countries.
For instance, an index of economic freedom ranks countries based on how political interference impacts business decisions in each country. Analysis Tools It is possible to analyse and forecast the impact of government policies on doing business.
There's an established model called PEST analysis, which evaluates political, economic, social and technological factors that could affect the cost and difficulty of doing business. The political and economic sides of the analysis are directly government-related, while government policies indirectly affect the social and technological environment.
These, too, are strongly influenced by government policy.The Political And Legal Environment Of China Economics Essay.
Print Reference this. Published: 23rd March, The political/legal environment: China is out sourcing too much to get the companies in to China for employment, high standard of living, good infrastructure etc.
BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS. Georgine K. Fogel, Lawrence Technological University.
ABSTRACT. China is an emerging economy that offers lot of market opportunities for foreign investment. The political/legal environment: A very good aspect of global marketing is legal/political features.
A binding of rules and regulations with their own principles of . Political and Legal Factors That Impact International Trade. Learning Objectives. Is there a well-established legal environment both to enforce policies and rules as well as to challenge them?
have tried to limit the influence of American culture on local markets by limiting or denying the entry of American companies operating in. Dec 30, · If you want to know what environment your company, your brand, your product and your investments will be operating in, then you must get an .
Justice in Malaysia: legal codes (civil, penal, trade), The Jurisdictions (Tribunal, Court of Appeal), dispute arbitration, legal professions (lawyers, legal experts, notaries), Business contract and Intellectual Property.