The Rise of China, its effect on Reshaping the Business Environment Essay

The Rise of China, its effect on Reshaping the Business Environment and how this Affects Multinational Enterprises - Essay Example Disadvantages include increased competition in the export market and increased competition for raw materials. In addition, it is unknown what China will be like as a world economic leader and what effects this will have on the rest of the world. Introduction The economic boom in China has resulted in continued significant growth to the Chinese economy and the growth is predicted to continue. Already China has the second strongest economy worldwide and projections indicate that this growth is likely to continue. Calculations suggest that by 2035 the economy of China will have completely overtaken that of the United States, who is the current economic world leader. As the economy of China continues to grow, there is already evidence of the country reshaping many economic variables and the environment for businesses. There are a large number of implications for businesses as a consequence of this growth particularly those which span multiple countries. A multinational enterprise (MNE) i s a corporation or enterprise that has its headquarters in one country, and operates in other countries also. This operation may be in terms of having distinct branches or stores in other countries, or it may mean outsourcing production or a portion of production to a different country. MNE’s vary significantly in size, with some being small, and others large, with budgets that are so large they exceed the gross domestic products of some countries. The countries in which MNE’s have their headquarters play an important role in the way in which they operate and their ability to generate revenue, however the international economic situation also plays a significant role. The rise of China has already significant affected economic relationships and trends internationally and there are strong indications that this trend will continue. As a consequence, the rise of China has many potential effects for MNEs including both positive and negative effects. The Economic Rise of Ch ina The financial crisis which has been affecting enterprises, governments and countries worldwide has provided significant opportunity for the economy of China to strengthen itself and emerge as one of the fastest developing economies worldwide. The economic boom that has caused this rise has been steady for four decades, and indications suggest that the rise is sustainable. Already it ranks as the second strongest worldwide economy, after that of the United States. It is the largest exporter of products worldwide, and the second largest importer of goods. It has been projected that the economy of China will be stronger than that of the US by 2035, and will be twice the size of the US economy by 2050 . The growth of China’s economy has always been independent of the US, having low growth when the US economy was soaring, and now growing rapidly as the US economy is having significant difficulties. As China is gaining economic strength and power internationally, the consequenc e is a shifting of economic power and the redistribution of economic linkages as well as the creation of new ones. The continued growth and development of China’s economy will eventually result in the displacement of the US as the predominant market economically, resulting reassessment and changes within all major economic markets worldwide. Before the financial crisis, China used an export model for its economy, exporting goods to

Casestudy Deepwater Essay Example | Topics and Well Written Essays - 500 words

Casestudy Deepwater - Essay Example Based on a report by the National Commission regarding the oil spill on 5th January 2011, it was discovered that these three organizations made an attempt to work much more cheaply; this triggered the onset of the explosion and thus ensuing leakage. â€Å"Whether intended or not, majority of the decisions made by BP, Halliburton, and Transocean escalated the threat of the Macondo blowout while simultaneously saving them plenty of time and money.†The government along with many other organizations in charge of the case tried to get to figure out the truth about who is really to blame. All the above mentioned organizations, BP, Halliburton, and Transocean should indeed be held accountable for the Deepwater Oil Spill accident. Supposedly, it was not intentional. However, there were severe consequences as a result and all three had an active role to play in it. Earlier on, BP released a statement stating that, even prior to the completion of the investigation by the commission, BP had incorporated substantial and adequate changes designed to enhance safety as well as risk management. To this, Transocean responded by blaming BP for arriving at decisions before the actual occurrence of the explosion and the government officials for conceding the decisions. According to Halliburton’s report, it was merely executing the orders of BP when it actually injected the cement into the well’s wall. It went further to criticize BP for its undeniable failure to carry out a cement bond log test. Precisely, BP was accused of nine flaws. In my opinion, they should all be held responsible for the incident because each had a role to lay in it. The penalty should vary based on the magnitude of one’s shortcomings though. In my opinion, there is nothing more important than safety. Safety helps to keep individuals alive and healthy. In every organization, each operation or process should only be carried out in the event that safety is ascertained. For business, the issue of safety