Prior to the industrial revolution, China was an economic powerhouse, generating one-third of the world’s GDP and producing the highest percentage of the world’s goods. After one and a half centuries of decline, China has reemerged on the global scene and aims to regain its historic stature as the dominant engine of the global economy. Due to its political, legal and economic differences with developed nations, Western firms face not only big opportunities, but also complicated risks.
a. Identify and explain three compelling economic reasons to invest in China. b. Identify and explain three compelling political and or legal reasons not to invest in China. c. What sort of operating safeguards would you advise a company to adopt to better manage the political, legal and economic risks of doing business in China?