Assess how the rise of China is re-shaping the business environment for MNEs; what are the implications for MNEs?

Thomas Bauer

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Seminar paper from the year 2011 in the subject Economics - International Economic Relations, grade: 2,2, Heriot-Watt University ...

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Seminar paper from the year 2011 in the subject Economics - International Economic Relations, grade: 2,2, Heriot-Watt University Edinburgh, language: English, abstract: Table of contents 1. Introduction 3 2. Definitions and theoretical framework 3 a. Multinational enterprises (MNEs) 3 b. Globalization and China's advantage 3 3. Economic growth of China 4 4. Reshaping of the business environment and implications for MNEs from the rise of China 5 5. Conclusion 7 6. List of references 8 1. Introduction Budgetary deficits and slowly growing economies are the main challenges of western governments and companies at the moment. The rise of China seems to save the western worlds bacon. The purpose of this essay is to highlight how the rise of China is reshaping the business environment for multinational enterprises (MNEs) and to define the impact on these companies. The paper will start by pointing out a short terminology and by considering the meaning of globalization for the rise of China. The rate of growth of China over the past years will be discussed on the followings. With the help of these facts it will be shown how the business environment for multinational enterprises has changed and in what way companies are affected.