While there are many factors that lead to an organization’s success or failure it is important to identify the risk associated with the endeavorfinancial or nonfinancial. Once the risks have been identified management has a responsibility to develop measures to mitigate those risks.
Tasks:
Using Samsung Electronics Co. Ltd imagine it has made a strategic decision to start doing business in China. Prepare a report in which you:
Develop a brief country risk assessment.
Determine the political economic social and capital risks associated with doing business in China. What are the most important factors to consider? Why?
After years of keeping the Yuan pegged to the US dollar in 2015 the Chinese allowed it to float freely in international currency exchange rate markets. You may read more about theYuan reforms (http://www.cnbc.com/2015/08/15/imf-yuan-reforms-may-bring-china-quite-close-to-floating-rate.html) here. Many economists believe that keeping the Yuan pegged to the US dollar has caused it to be undervalued by 30 to 50 percent. Discuss what impact a revaluation of the Yuan might have on US multinationals doing business there on Chinas exports and on Chinese citizens standard of living. What impact would a revaluation have on Chinese inflation? Explain.
Paper should be about 2000 words.