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Case Study Of Huawei

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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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