International Business - Dissertation Example

Introduction China has risen to become a leading player in international business. China’s rise has been gradual, since the late 1970’s to date. In prior years, China was a socialist state but in the past three decades, China has done a lot to convert itself into a consumerist economy. From the 1980’s China began to relax some of its restrictions on trade operations (Tseng & Zebregs, 2002). This relaxation of trade constraints has made China a very lucrative place for International Business.

Foreign investment has had a huge impact on business development in China. This essay is going to discuss foreign investors, rules governing foreign investment in China, and how some of these rules have been relaxed to contain foreign entrepreneurs. Relevance statement The significance of this essay is that it will act as a supportive lead to people wishing to do business in China, especially foreign investors. In modern times, there has been a rush by investors to set up businesses in China.

Competition for investment in China is very high and businessmen need to know what to expect of China’s trade regulations. . For this reason, various works of literature have been written in a quest to understand how China has managed to get to the top of international business. As indicated earlier on in this essay, China had very strict laws on how to conduct business especially with foreigners. Nonetheless, China realized the disadvantages of such strict policies and improved its relations with international markets by initiating various government reforms towards the relaxation of trade policies.

For example, Li (2001) states that the government of China did way with a provision that required all foreigners running firms in the country to locally source for raw materials. Today, foreign entrepreneurs in China are allowed to purchase raw materials form outside China, in order to facilitate the growth of their businesses. The fact that China accepts individual investors form foreign countries to operate in the country is an achievement. Previously, China only allowed investors to set up businesses by use of joint ventures.

According to Graham & Harm (2006) joint ventures continue to be the most prominent form of foreign investment in China. Methodology In this essay, I will use qualitative methods such as interviews and questionnaires to collect information. I will also use quantitative techniques such as statistics to affirm the information. I will distribute questionnaires to various foreign investors in various regions in China. This will enable me get actual information on how the relaxation of various economic policies has eased foreign business in China.

I will also interview government officials to find out what specific policies have been done away with, or relaxed to allow for more foreign investment. In order to obtain statistical data on the growth of foreign ventures