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Business Environment Analysis : Macro Environment Essay

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Business Environment Analysis

Macro-environment Analysis

With a population of 1.3 billion, China recently became the second largest economy

and is increasingly playing an important and influential role in the global economy

(The World Bank, 2016). It is the most populous country in the world and one of the

largest importers and exporters of goods. According to BMI research, China is also

the largest recipient of foreign direct investment in the Asia-Pacific region, while a

large number of the country 's up-and-coming companies also invest enormously

overseas. With the emerging of middle and high-class, China has a significant

domestic market. The high revenue consumers are in high demand of high-quality

products from overseas, such as luxury products, electronics devices. This rise

boosted international business. This section of the report is aimed to uncover the most

important aspects of China’s past, present and forecasted macro-environment. Macro-

environment has been separated into four parts, political and legal, economical, social

and technological factors. It is noteworthy that these four parts are highly interrelated.

Political and legal

For MNE, better understanding the political and legal environment in any foreign

country is of integral importance, especially prior to setting business activities in the

region.

From late 1970s Chinese government implemented reform and opening policy. Since

then China has opened its market to

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