Topics: Economics, Investment, Macroeconomics Pages: 7 (1547 words) Published: September 22, 2014
There is an Australian company named Australian Laboratory Services Pty Ltd (ALS) doing oil shale and mineral exploration business.ALS try to expand their business to China which is new for them. This report is aimed at to be a consultant to give some assistance about the feasibility of this new venture by analyze political, economic, socio-cultural, technological and legal environment of China. The data is collected by combine with other’s opinions on website as well as in proquest belongs to Curtin and also compare Australia and China’s environment and culture by use Hofstedes Cultural Dimensions.

Australian laboratory services ltd(ALS) is an Australian company exploring the business in China . This report furnishes an analysis and evaluation of the external environment of China .

The purpose of this report is describe findings and informations of China external environment.This analysis will be conferred in the report for promote ALS’s deciding to expand their operations in China. The analysis include political, economic, socio-culture, technological and legal environment of China.

The findings of China’s external environment are related to ALS company. The opportunities and threats of China’s external environment will be most focus on and be accompanied by strengths and weakness of ALS company. SWOT analysis is the basic of the feasibility of this expansion

This report will present relevant the information on the political economic, socio-cultural,technological and legal environments that affect ALS company. An analysis of the findings will presented in each sections and followed by a SWOT analysis. A recommendation section will be included in final of report.

2.1 government stability
The China’s government has been stable for a decade. Although, in this few years, riots happened in China which has resulted in unstable condition for foreign companies’ investment. China government adopted very strict measures to stop and prevent this conditions in order to creates a safe situation for foreign investors 2.2Government relations

The China’s government has friendly and open relations with neighbouring countries .China is a member of ASEAN, maintains trading relationships globally and has a positive political relationship with home country 2.3Analysis

This demonstrates that the government is stable and therefore presents a safe place for foreign trade. In addition, friendly political relationship presents are positive for foreign business companies.Both of them create opportunity for ALS Company to do business in China.

Legal Environment
3.1Business laws
There are three basic business laws in China: The Company Law of the People‘s Republic of China; The Income Tax Law of the People‘s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises; Interim Provisions for Guiding Foreign Investment; Industrial Catalogue for Foreign Investment; Interim Provisions Concerning the Investment within China of Foreign-invested Enterprises, Provisions Regarding the Merger and Separation of Foreign-invested Enterprises, and Liquidation Measures for Enterprises with Foreign Investment Currently, the China’s government is considering its existing laws and statutes in accordance with the model of the WTO. It has abolished certain obsolete laws and regulations, and will gradually revise the laws and regulations that are incompatible with the rules of the WTO 3.2 Labour laws

In order to encourage foreign companies to invest in China, China Government has gradually set up a relative complete law system A positive and completed business laws and labour laws are provide an opportunity for ALS company’s business expanding in China.

Economic Environment.
4.1Currency exchange rate ($)
China has had the highest average yearly economic growth rate between 1980 and 2004 of 9.8%().During the global recession of 2008 and 2009,...
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