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Business Environment Analysis Report

BUSI2025 - International Business

19 Found helpful 7 Pages Essays / Projects Year: Pre-2021

Globalization has already made the world a whole large market. And in this huge market, China plays an important role. As the largest two-way trade partner of Australia, many Australian companies start to take their steps to China. This report focuses on the operations of PaperlinX, a fine paper wholesaler based in Melbourne. The analysis has indicated a series of opportunities and threads for PaperlinX to do business in China. First, in terms of social and culture environment, large population provides large demand of products. The education rate also ensures the demand. Second, in political and legal point of view, China has a stable political system but with high level of corruption. The economic freedom is not considerable as well. However, the openness to FDI is relatively high. Apart from that, as the CCP turnover, a series of new regulations came out. These regulations will gradually reform and rebalance Chinese business environment in the next few years. Third, from an economic aspect, Chinese business environment is growing fast. Although the growth rate has slowed down in the past 2 years, the situation is still considerable. Forth, consider about trade and financial environment, Chinese market is quite friendly to Australian companies. The free trade agreement between two countries includes many industries. Recently, a convention concerning about tax administration had also been signed by both of the two countries. Last, in terms of infrastructure, China is quite well equipped. Delivery of good and materials or telecommunications may not be a considerable problem. A total of 3 recommendations were proposed in the report. These recommendations focus on areas such as the political and legal environment, the economic environment and the timing of entry.


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