However, no investment can be considered free of risks. The most critical risks to firm operations are the traditional risks (government regulation/legal decisions, country financial risks, currency/interest rate volatility, political and social disturbances), the emerging risks (theft of intellectual property, security threats to employees and assets), and other threats such as: corporate governance issues, absence of rule of law, disruption of key supplier/customer/partner, product quality and safety problems, IT disruption, employee fraud or sabotage, natural disasters and activist attacks on global or corporate brands.
China surges ahead in the index as profitability targets are being met. China takes the number one spot for the third consecutive year and increases its raw score lead over the United States." Total FDI inflows in 2003 hit $53.5 billion. Profit targets in China are expected to be achieved aster than in other emerging markets. Also, new investors are expected to make first-time investments in China, expressing a very positive outlook on China's economy. China's main strong points are the vast low-cost labor pool and the consumer market expansion. The most optimistic investors are the wholesalers and the retailers, followed closely by heavy and light manufacturers.
A very important opportunity on the Chinese market will be possible due to the WTO-mandated opening of the Chinese banking sector, financial service investors awaiting for liberalization.
Another profitable sector appears to be the smokestack and textile industries, China being expected...
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