Global Enterprise and Innovation (in China) Essay

Global Enterprise and Innovation (in China) - Essay in effect(p) exampleThe sub judice look into of the estate is extremely crucial factor which decides the foreign enthronisation. For making a good investment situation there must be a reliable and efficient reasoned form and the system must be transparent. This will help the investors to perform their vocation activity without any concern. contempt the above factor several legal problems have been encountered in China which affects the foreign investment and line of descent 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 land. By various rules, regulation, polity 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 a ctivities. For maintaining a good legal environment condition for business, China has repeatedly modified the existing equity and conducted overbold 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 convenient 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 majuscule entry. In the year 2002 China established Directory of Guidelines for contrasted Capital Investment for motivating foreign company to invest in their construction labor, agriculture industry and technology industry and resource development sector. China ali ke provided permit to the telecommunication industry, insurance industry, financial industry, service industry and foreign trade sectors. The General 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. There 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 back off (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 great 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