Global Enterprise and Innovation (in China) Essay

Global Enterprise and Innovation (in China) - Essay ExampleThe effective condition of the field is extremely all-important(a) factor which decides the foreign investment. For making a good investment situation there must be a reliable and efficient heavy dodging and the system must be transpargonnt. This will help the investors to perform their business activity without any concern. Despite the above factor several sub judice problems waste been encountered in China which affects the foreign investment and business enterprises (Bulcke & Beule, 2010). The Legal Environment Affecting Business of China China has a good and established legal condition that encourages the foreign investment of different companies and protects their interest to invest in their country. By various rules, regulation, legislation and joint agreement the country has strengthened their legal systems. In order to spread their business in the whole world China is taking part in many global trade activities . For maintaining a good legal environment condition for business, China has repeatedly modified the existing fair play and conducted new laws. Moreover, 30 government departments have changed their regulation towards law in approximately 2300 files. By these changes in law and policies on foreign investment activities China has steadily developed a legal environment which is well-provided for foreign business interests. For implementing the law there has been a series of actions and procedures regarding the management, establishment, purchase, investment, reinvestment, liquidation, reform and termination of foreign company. By the help of those policies and guidelines, China seeks to attempt the foreign outstanding entry. In the year 2002 China established Directory of Guidelines for Foreign Capital Investment for motivating foreign company to invest in their construction exertion, agriculture industry and technology industry and resource development sector. China also provide d permit to the telecommunication industry, insurance industry, financial industry, service industry and foreign trade sectors. The everyday Agreement of Science and Trade showed 142 services and business enterprises which are grouped under 11 activities. Foreign investors always want a sound legal condition because it allows high return on investment and they want a system which allows them to withdraw their investment capital according to their strategic plan. on that point are various methods by which the investor can withdraw their capital investment which are initial public offer, equity transfer, management takeover, liquidation and purchase share moxie (Feng, 2010). The Political Environment Affecting Business of China Any countrys political condition has a significant impact on business. There are several factors which a country must consider if it wants to expand the business and investment of foreign companies because a political environment of a country is unstable and can change rapidly. The power of political party and government represent the opinion of the countrys citizen. The rules and regulations created by politician have large(p) impact on business. Political condition creates advantages and also disadvantages for certain companies. For example, the policies of Chinese government drove out few U.S. technology