Business Environments Of Chinese Society

2814 Words Mar 30th, 2015 12 Pages
Assignment: Business Environments in Chinese Society:
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Introduction
Business environments across the world have been experiencing numerous and rapid dynamics, forcing business enterprises to look for more intelligence before entering such markets. The need to start businesses in foreign markets is created by variety of factors which includes saturation of local markets and availability of attractive opportunities in foreign countries.
China has been a focus of many foreign investors, owing to various reasons which serve to create attractive business opportunities. For instance, the country has been experiencing rapid infrastructural developments, reducing
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The new rules require that payments of foreign exchanges for revenue accounts should have legitimate and genuine basis, institutions handling transactions should verify to verify. This would affect our business since it limits our opportunity in exporting services even to international markets (Minikin, 2012).
The government has changed its exchange rate system for RMB; it will not only consider US dollars only, but a variety of currencies, which serves to make conversion even easier. The system will be considering market demand and supply, administered through a floating system. Consequently, RMB will be administered in relation to US dollar as well as several other key foreign currencies (Naughton, 2007).
The revised regulations stipulate that a portion of revenue will be retained in revenue accounts, contrary to there before. Whole amount of such account’s revenue may now be retained and the receiver will not be obligated to convert the revenue into RMB. This is to favor of foreign investors who will now choose their preferred currency to operate their businesses.
The monetary policy in this state cancelled the previous complex review procedures regarding currency exchange quotas for enterprises of foreign nature. Such firms will now require only registering their details with the relevant authorities. Foreign companies are now free to offer loans to their overseas subsidiaries or parent

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