A Brief Country Risk Assessment

1104 Words5 Pages
Risk Management Application
Develop a Brief Country Risk Assessment Determining the most important factors to consider when doing business in China can be tricky. There are a number of things to consider starting with the Chinese culture. Chinese expect foreign businesses to be sensitive to their culture. They do not expect them to be fluent in the Mandarin language but they are more open to those who try. Chinese people are very are very loyal to their families and place high value on their history. Relationships take very high priority when attempting to forge new ventures in China. The Chinese are protective of their culture and work hard to maintain it’s integrity; therefore, they expect to take as much time that is needed to
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The Chinese government is highly involved in business practices, unlike the American government. Their government plans China’s economy; therefore, it can be difficult for Americans and other foreigners to understand and work with them. Those making major business decisions need to understand Chinese government regulation and involvement in business practices. Chinese law lacks consistency and the their government has the right to change the standards at anytime without notice. Property rights and intellectual property rights are vague and can also be changed at the will of the Chinese government. Any contracts that take place between Chinese and foreign governments, to include, the United States can easily be cancelled or changed. When contracts are implemented in China the Chinese have control over the assets and ownership of the joint venture. The Chinese negotiators take their time when making business decisions. They are not quick to come to an agreement in joint ventures; this is very different that the American way of doing business. It is essential that Costco takes their time to research all their options and strategize an effective business plan that will enable them to do business in China while mitigating the risks of losing control over their assets and ethical business practices as a result of doing business in China.
China is petting the Yuan After years of keeping the Yuan pegged to the US
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