A Brief Note On The International Business Situation

II. ANALYSIS OF THE INTERNATIONAL BUSINESS SITUATION A. Economic, political and legal analysis of the trading country 1. Describe the trading country’s economic system, economic information important to your proposed business/product/service, the level of foreign investment in that country According to China Highlights, prior to 1978, China maintained a command economy. Then, China launched multiple economic reforms. The central government made incentives for farmers. It also established Special Economic Zones along the coast of china for the purpose of attracting foreign investors. China’s entry into the WTO in 2001 has been one of the best influential factors in shaping the Chinese economy. As a result, the implementation of new commercial laws, as well as a huge influx of foreign direct investment, has extensively liberalized the economy. China’s economy grew at an average rate of about 10% per year during the period 1990-2006, which was the highest growth rate in the world, and promises future growth to come. The average of the country’s GDP will be around 8.5 percent in 2012 and 2013, according to a report from the rating agency Moody’s Investors Service. China would still reach US$40 trillion in GDP by 2054. China is the second larges t economy in the world after the U.S. China’s trade surplus hit a record US$262.2 billion in 2007, overtaking Japan to become the world s third largest trading nation, right after the US and Germany. A country’s economy cannot growShow MoreRelatedA New Up And Coming Uk Government1674 Words   |  7 Pagesand coming UK government, our main aim is to address the current economic situation the country is faced with, the serious debt problems, the rise in unemployment and the lengthy period of recession. 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