How the rise of China is re-shaping the business environment for MNEs (multi-national enterprises)

What are the implications for MNEs?

Essay from the year 2012 in the subject Economics - International Economic Relations, grade: A - 70, Heriot-Watt University Edinburgh (School of Management and Languages), language: English, abstract: Nowadays, it is scarcely possible to trade commodities all over the world without any constraints. Thus, the increasing flow of information has taken control inside the world economies and created one global market, where multinational enterprises in different countries interact with each other. In addition to that the view of the world has changed in the spot light of globalisation. One cannot deny that one country, China, plays a decisive role in this complex scenario and is re-shaping the business landscape strongly. The results are shifting productions, technologies and knowledge to achieve higher profits and market shares to maximise shareholders wealth. The competitiveness leads to a rat race, in where contemporary enterprises have to readjust their business strategies. This essay spars with the topic: 'How the rise of China is re-shaping the business environment for MNEs (multi-national enterprises); what are the implications for MNEs?' The structure of this essay refers to the main causes of the rise of China and particular to the economic implications on global economy and for multinational enterprises (MNEs). Moreover, the essay will examine the different entry barriers on the Chinese market and outline in this context the opportunities for MNEs. Finally, the conclusion will summarise the main points and take a firm stand.