International Business Essay Example | Topics and Well Written Essays - 3000 words - 6

International Business - Essay ExampleThese basic characteristics of Hong Kong assist the investors to invest to a greater extent in the pieceal and global markets. Global reports state that Hong Kong continues to be the Asias second and worlds third major recipient of Foreign Direct Investment (FDI). Furthermore, in accordance with the report presented by the World Bank, it can be ascertained that Hong Kong is considered to have bagged the second position associated with ease in conducting backup within the region. Hong Kong government has implemented advanced measures in endorsing a market that entails policy related to lower limit government interference. In Hong Kong, foreign investments are readily welcome and there exists no law for defend the local business against the international competitors. Another advantage which Hong Kong enjoys is its location in central Asia from where all the place markets are at a distance of merely four hours by air (PwC, 2012). This report int ends to question the strategic operational facets related to a major British international retailer, which wants to expand its business in one of the Asian Dragons i.e. Hong Kong. It gives an insight about the implications of political, cultural, economic and ethical risks associated with the foreign business. appellative along with evaluation of the opportunities frames a vital part of the study with the inclusion of appropriate examples. Furthermore, it will provide findings and recommendations related to the market entry strategy required for the international retailer to enter the Hong Kong market. The key set out of the report would be to reveal the attractiveness of Hong Kong in terms of potential return on investment. establish on the analysis, the feasibility of the nation would be determined and accordingly recommendation would be placed to the counseling of the retailer whether it can invest or not. Critical Analysis of Political Risk Political factors of whatever re gion frame an important constituent for new business setup. It frames the bases of the policies and regulations that are needed to be adhered by the new business setup for growth and continuation of trade. For any foreign investors, it becomes necessary for them to acquire a vivid understanding about the political conditions prevailing within that particular region. If a particular region enjoys favourable political relationships, it initiates stable business environment and facilitates to accelerate the international collaboration in more of the areas. Furthermore, stability in political conditions further increases the foreign business opportunities by lowering the risk factors. Considering Hong Kong with look at to the political condition, The HK Special Administrative Region (SAR) was basically headed by Donald Tsang, whose tenure of being the Chief decision maker ended up in the year 2012. Furthermore, Hong Kong is considered to be a broad and an open society, where the cou rts are free to take independent decisions, human rights are greatly respected, stable law is abided by the citizens and they are authorise with the ability of changing their government. The various political parties being prevalent within the