China's Ability to Attract Multinational Companies Essay

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In the business world, Management Information Systems (MIS) is one of the most important departments in business organizations and the main means of MIS is risk management. Business companies in general face different and varied risks as a result of activities which occur within the organization. In addition, companies are influenced by external factors such as economic and political conditions. However, multinational companies encounter more complicated risks, especially because of the scarcity information about the new environment.
After China’s admission to WTO in 2001, it has become as one of the most important destinations for international business. It seems that China is a big market that is supported by the central government and
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This situation will be a state of instability to the multinational companies and it requires meticulous study of the government policy, business environment and Chinese law. Another political risk is the lack of a legal system which protects the transactions of multinational companies (Zhi, 1995). For example, Chinese government is not very strict with the enforcement of patent security law, so theft of intellectual property will affects business activities in china; it will threaten multinational companies and cost them much money. In addition, the conflict between central government and the provincial governments create uncertainty with regard to the law that should be followed by the multinational companies (Gordon, 2010). However using experts in Chinese law could help multinational companies to understand the situation in order to avoid this risk and reduce the negative impacts.
Although, China's attempts to integrate with the global economy and open its markets to international companies, China still has a high degree of regulatory and legal risks. Bureaucracy for example remains a major obstacle this development.

Social risks:
The first social risk that threatens multinational companies is the rejection of society and government to accept the existence of foreign companies and their business activities (Kytle,Ruggie, 2005). In particular
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