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Seminar paper from the year 2011 in the subject Economics - International Economic Relations, grade: 2,2, Heriot-Watt University Edinburgh, language: English, abstract: Table of contents 1. Introduction 3 2. Definitions and theoretical framework 3 a. Multinational enterprises (MNEs) 3 b. Globalization and China’s advantage 3 3. Economic growth of China 4 4. Reshaping of the business environment and implications for MNEs from the rise of China 5 5. Conclusion 7 6. List of references 8 1. Introduction Budgetary deficits and slowly growing economies are the main challenges of western governments and companies at the moment. The rise of China seems to save the western worlds bacon. The purpose of this essay is to highlight how the rise of China is reshaping the business environment for multinational enterprises (MNEs) and to define the impact on these companies. The paper will start by pointing out a short terminology and by considering the meaning of globalization for the rise of China. The rate of growth of China over the past years will be discussed on the followings. With the help of these facts it will be shown how the business environment for multinational enterprises has changed and in what way companies are affected.
Essay from the year 2011 in the subject Economics - International Economic Relations, grade: 2, Heriot-Watt University Edinburgh, language: English, abstract: 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.
This book offers a concise and analytical portrait of the contemporary world. The author encompasses concepts and theories from multiple disciplines notably sociology, anthropology, business, and economics to examine major global trends and transformations of the modern world, their underlying causes, and their consequences. The text examines global demographic trends, globalization, culture, emerging markets, global security, environmental degradation, large corporations, and economic inequality. The author also analyzes major transformations in healthcare, food, the sharing economy, Fourth Industrial Revolution, consumption, work and organization, innovation and various technologies in areas such as automation, robotics, connectivity, quantum computing, and new materials. This book is a valuable reference for business leaders, managers, students, and all those who are passionate about understanding the rapidly changing contemporary world.
Now in its third edition, this core textbook for advanced undergraduate, graduate, and postgraduate students combines analytical rigour and managerial insight on the functioning and strategy of large multinational enterprises (MNEs). Verbeke and Lee develop an original conceptual model that supports student learning by providing an integrated perspective, rooted in theory and practice. The discussion also includes unique commentaries on seventy-four seminal articles published in the Harvard Business Review, the Sloan Management Review, and the California Management Review over the past four decades, demonstrating how the key insights can be applied to real businesses engaged in international expansion programmes, especially as they venture into high-distance markets. This third edition has been thoroughly updated and features new sections on multinational entrepreneurship, strategic challenges in the new economy, and international business strategy during globally disruptive events, including the COVID-19 pandemic. Students will benefit from updated case studies, improved learning features, and a wide range of online resources.
Essay from the year 2011 in the subject Economics - International Economic Relations, grade: 2, Heriot-Watt University Edinburgh, language: English, abstract: 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.
Analyses trends in the offshoring of R&D, examines its drivers and motivations, and identifies implications for innovation policy.
This book aims to examine the multiple effects of the COVID-19 pandemic on China-Southeast Asia relations from both Chinese and Southeast Asian perspectives. It invites many officials and scholars from the leading think-tanks and famous universities in China and Southeast Asian states to contribute and tries to reveal how has China-Southeast Asia relations been reshaping during/after the COVID-19 pandemic and discuss what kind of measures could be taken to push forward China-Southeast Asia relations and thus ensuring the peace and prosperity in the region. The main content of this book is divided into 10 parts, in which the first chapter briefly introduces the COVID-19 situation in China and Southeast Asia, China’s anti-COVID efforts, and the impacts of the COVID-19 on China-Southeast Asia relations from Chinese and Southeast Asian perspectives. Chapter 2 examines the dual influence of the pandemic on the construction of China-ASEAN community of a shared future and gave some useful policy recommendations on improving China-Southeast Asia relations. The following 8 chapters go deep into the Southeast Asian states’ response to COVID-19 and the economic, political and social effects of the COVID-19 on Southeast Asia–China relations, and look forward the future development of such relations. In addition, it also analyzes Southeast states’ reactions to the intense Sino-US power rivalry during/after the COVID-19 pandemic. This book is probably the first comprehensive study that investigates the impacts of the COVID-19 pandemic on China–Southeast Asia relations from both Chinese and Southeast Asian perspectives. It would not only open up a new area of study on China and Southeast Asia relations, but provide insightful observations and useful information for governments, companies and social organizations to facilitate cooperation in trade and investment, public health, and people-to-people exchanges. Therefore, the intended readership not only includes the academics but also officials, businessmen, journalists and social activists. The most important feature of this book is that it points out China–Southeast Asia relations would be reshaped by COVID-19 in the long run and analyzes how it would be reshaped. It also shows a well-balanced view on the COVID-19 and China–Southeast Asia relations as both university scholars, think-tank experts and government officials are involved in this book.
Chinese multinationals have grown in size and increased their global presence dramatically over the last decade. They have emerged as formidable competitors for western incumbents. These firms have instigated profound changes, such as displaced trade and investment flows, new business models, and the emergence of a new geography of global innovation. In a single volume, The Era of Chinese Multinationals captures the forces driving the disruptive growth of Chinese multinational corporations. Following a presentation of the surge of Chinese companies, the book turns to corporate characteristics of those firms and how they compare with western multinationals in terms of revenues, profits, branding, and business strategy. The book uses data and case studies to depict the relevant issues with the goal of providing insights to global executives on collaborating and competing with Chinese companies.
This contributed volume seeks to provide a unique window on the globalization process by analyzing the dynamics of Foreign Direct Investment (FDI) in Europe and Asia, as well as its influence on the renewal of public policies and regulations, both transnational and local. It discusses the link between the trans-nationalization of productive and business systems and the renewal of local regulations in the light of concerns over competitiveness and attractiveness, as well as new social tensions. Multinational corporations (MNCs) as key actors of globalization are central for understanding the new interactions between the global, regional and local dimensions as well as for highlighting the challenges of regulation both at transnational level and within national boundaries. Research approaches along two broad lines are presented: First, a theoretical and empirical approach that examines links between the strategies of multinationals and local public policy in order to contribute to a better understanding of the institutional dynamics of social regulation. Second, a comparative approach that compares regional spaces, with particular attention to Europe on the one hand, and to the two great emerging powers, China and India, on the other.
The Belt and Road Initiative (BRI) is establishing significant connectivity networks, including a complex network of aviation e-services and trade network systems. It has promoted economic and financial development in regions covered by the BRI in terms of infrastructure construction and interconnection and attracted large foreign direct investment flows. At the bottom of the escalation of the China-US trade dispute is a more fundamental shift where China has become the US’s strategic competitor, and political-economic tensions have continued to climb. Opportunities and Challenges for Multinational Enterprises and Foreign Direct Investment in the Belt and Road Initiative analyzes the opportunities and challenges of multinational enterprises (MNEs) and cross-border foreign investments transactions. This valuable reference adopts an economic and international business perspective to address these issues and presents novel and state-of-the-art research insights into the role of MNEs and their influence on the Silk Road Economic Belt. Covering topics such as economic determinants, foreign direct investment promotion policies, and trade gravity model, this premier reference source is an excellent resource for business leaders and CEOs, policymakers, geopolitical experts, politicians, government officials, sociologists, libraries, students and educators of higher education, researchers, and academicians.