International Management

*INTRODUCT*ION

Today, the self interested nature of businesses motivates them to pursue profit in an independent global world. This could mean linking with suppliers and buyers to satisfy self interest. It almost certainly means relocating jobs to low wage economies because to do otherwise is to lose out to competitors. It can then be argued that linked worldwide production chain has become vital for businesses to operate efficiently and survive in today’s competitive world.

This report is compiled to advice your organization in choosing the most profitable location to expand production. It will discuss an analysis of countries including China, Angola, Mexico, Bolivia, and Indonesia. The analysis will be based on the general environment of these countries. Major highlights include; industrial, economical, political/legal, technological, social and cultural influences on businesses in the global arena.

CHINA

The open door policy of China since 1970’s created continued opportunities for foreign investors. It has become the second largest FDI recipient in the world after the US and the largest host country among developing nations.

As China became a member of the WTO, “the law on foreign owned enterprise” and its implementation regulations have been amended in the year 2000 and 2001 respectively to adapt to the new changes in their economic circumstances. Thus, a free legal environment for foreign enterprises has been further improved.

Foreign investment however is regulated through many laws. This could be the major reason why many companies are still hesitant to do business in China. Moreover, companies fear that their power over the venture will be much limited and that they will only be used for capital and technology transfer.

INDONESIA

Indonesia has witnessed an economic crisis for over 30 years. After the outbreak of the crisis in 1997, Indonesia’s GDP fell, the number of people living under the poverty line increased considerably,...