As we know that Huawei currently expands its business worldwide. The complex international economic and political landscape may expose Huawei to particular risks in certain countries and regions such as economic and political instability, sovereign debt crises, and regulations on local business operations and so forth. Thus, one of the risks face by Huawei is political risk. Political risks in the domestic environments are due mainly to policy changes that bring to uncertainties of enterprises’ operations. For an example, the local government may show favorable responses to a particular project, a new government policy may suggest that the project should be dropped down due to the environmental issues especially when the project is related …show more content…
The political risk included damage to China’s reputation on alleged grounds that it collaborated with Huawei in cyber-espionage. This is because China is suspected of being one of the main perpetrators which are focused on espionage and the acquisition of information. Therefore, they generate suspicion as to whether Huawei’s intentions are strictly commercial or are more political because of the alleged links between Huawei and the China are concerning. On the May of 2016, Canada is citing the espionage risk from two Huawei employees as it prepares to reject their immigration applications. Other than that, the US government had concluded that should not do business with Huawei if they want to protect the US national security on year 2012. This resulted Huawei’s public image among American consumers has suffered damage and definitely hurt Huawei’s future business in North America. Besides, Huawei have captured a significant market share because the strengths which is price competitiveness when compared with Apple and Samsung recently. Thus, this trend is simply fear and makes Chinese’s enterprise different when they enter an overseas market, causing substantial political risks hindering their overseas
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Internet censorship and the requirement of self-censorship not only harm the economy inside China, but also are negatively affecting China in aspects of international commercial trade, even as globalization becomes the trend of today’s world. Chinese Internet censorship is applied to both directions; not only blocks Chinese Internet users’ access to certain foreign websites, but also prevents foreigners from knowing the truth about China through refusal of releasing reliable information. So when foreign companies want to enter the Chinese market, they face a serious question: “How do you assess an investment opportunity if no reliable information about social tensions, corruption or
On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.
6. In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?
Cisco Systems is a global market leader and innovator of computer communications and networking solutions. Established in the 1980’s, the company rapidly developed into the world’s greatest manufacturer of internet routers and was/is a foremost provider of commercial communication network devices. The aim of this case study report is to create an understanding of Cisco’s historical international business activities as well as explore their recent and current developments in international business management. The ‘Recent Development’ section details both Cisco’s main strategy of Acquisitions and how the company has operated under and coped with new management.
By reading the story ‘The boy who saved me from myself’, we learned that we need to have grit while confronting a problem and get over it by ourself. To have grit is important because it helps people to develop their growth mindset. For one the protagonist, Ryan White, had shown his grit in the story. Although he had two horrible diseases, instead of defeating by them, he was still struggle with them. Unfortunately for Ryan, people around him were not kind.
Apple is being criticized in China for three main issues, including slave labor, guarantee scandal and underdeveloped infrastructure. However, China is a significant market for Apple. Apple’s market share in China is continuously growing while decreasing in mature countries. Issues related to human rights and labor protection in China are sensitive and of globally mutual concern. If we do not address these issues properly, we will lose Chinese customers as well as suppliers and sub-contractors. This may also seriously impact the reputation and sales of Apple products worldwide.
Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.
Microsoft is a multinational corporation of the United States; It specializes in developing, manufacturing, trading software licenses and supporting a wide range of computer related products and services.. In terms of revenue, Microsoft is the world's largest software maker. It is also called "one of the most valuable companies in the world".
Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.
We have selected Huawei Technologies Company Limited for our MIS project. We selected Huawei Technologies Company Limited because this is a Chinese company .At first we selected Citycell (Telecom Operator), but when we visited City cell we learnt that City-cell is now using Huawei product, and Huawei is a Chinese company. We know about the quality of Chinese product. Most of the Chinese product can not make people happy or satisfied. But we found that Huawei now is one of the top positions in the world. This inspired us about the Huawei.
This case is about implementation of a new “shared vision” concept within The Analog Division of Motorola Company. In 1993 Analog division was a major manufacturer of analog products in the world and had its divisions in many different countries. In other words the division had strong global presence. In order to create more efficient global company, Alison and John have decided to develop new shared vision within The Analog Division where managers would be involved directly and indirectly in the decision making process. Before the new vision development, Analog Division and its managers was very limited in decision making. Because they had such a strong global presence their
most important of which include: (1) anticipating the wishes and needs of the guests (2) resolving their problems and
One notable example of an organization that adopts significant CSR initiatives from a developed country is Starbucks which is an American multinational corporation. On the other hand, a considerable example of a company with significant CSR from a developing country is China Mobile which is still in its global expansion stage. The China mobile company is a Chinese multinational corporation. The two different companies offer an effective platform for comparing the CSR understanding and initiatives of different organizations from the developed world and from developing countries. What makes the examples even more effective is the fact that the two companies are different stages of development in the global business environment. This makes it
Huawei also pitched the fact that any Cisco-trained engineer could operate the Quidway router with ease. Cisco’s rise to the leadership in networking equipment and technology was the result of many years of diligent, hard work and creativity. Cisco holds several patents, copyrights, and trade secrets that are critical to its success. Huawei, on the other hand, chose to make shortcuts and had complete disregard for the sanctity and legality of intellectual property. In fact, Huawei’s Vice President confessed that “all the world’s leading equipment suppliers are our learning modules.”[1] Can Huawei’s belief in “learning” from their competitors and Cisco’s belief that Huawei stole and copied intellectual property be attributed to a differing ethical perspective due to culture? We will discuss this in Section 3.