Document Type:Thesis

Subject Area:Business

Document 1

This brings in the issue of latecomer effects with respect to the rate of growth. By moving into the global market, the company tends to avoid experiencing any form of disadvantages arising from the latecomer ideology. Therefore, multinational firms tend to be up to date with the infrastructural, technological and industrial advancement. These are just but a few significant reasons why the majority of multinational companies are reaping high in their areas of specialization. BACKGROUND This report will have its focus on the Wesfarmers Limited. The mainstream activities by financial institutions such as credit services have all been victims of regulations and recession. (Aston, 2017) Secondly, the UK has a considerably sufficient market. Looking at this from the perspective of population, the data released for the year 2016 revealed that the country has a population of 65 million people.

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The national statistics agency also revealed that the number of children being born surpasses that of those dying in that year. This affirms that the UK has got a monotonically rising population. On the other hand, taking a look at various external factors that may affect any company in China, there are a number of issues which cannot go without being mentioned. The first one being the Foreign Direct Investments (FDIs) in China and their contribution. Being such a big and major host of the top entities from around the world, the issue of FDI comes up. One of the best of understanding China's economy at large with respect to its open market is by studying the contributions that FDIs are making towards the country's income.

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For example, the 2009 data revealed that 27% of China's product value arose from direct investments by foreign entities, which also generated 58% of the total revenue resulting from foreign trade. From there onwards, the period of energy independence for China was no more. (Daojiong, 2006) In addition, China exists as the only known global warehouse why almost every country and business value is represented. Multinational companies from around the world have converged in this country with different objectives. This means that it can be the best venue to ensure that one builds the necessary connections which will go a long way in growing one's business. In China's Society, there exists the idea of personal connections, usually expressed by the Chinese word 'Guanxi'. Those known by other states and international organizations to be under the UK include Anguilla and Cayman Island.

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Some of those that still being fought over due opposition by other countries such as Spain include the Falkland Islands Gibraltar, Bermuda. Spain has been expressing its displeasure and regrets concerning the decision to cede its sovereignty over Gibraltar for many years now. The question of how BREXIT will affect the nation's overseas territories still remains a puzzle to many. Comparing this with China's geopolitical situation, there are some similarities and differences as well. Remember, this does not imply that the USA will disappear from the region, but instead it will continue exerting more of its influence over the region, therefore, marking the beginning of what many are describing as a gathering storm. (Mearsheimer, 2010) 3. The UK's trade and business policies in comparison to China For a long time now, UK has never expressed any desire to align its market so as to be welcoming to the idea of embracing a continental currency.

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Along with the U. S. This was a clear statement by China that advocating for a shared trade globally was the way forward. (Hilpert, 2014) The potential dangers, Risks, and opportunities Despite booming ties stuck between China and the United States of America, the relationship is becoming increasingly complex in that it ends up brewing tension between the two countries. According to the U. S, the many trade frictions between the two countries is usually brought up by China's failure to adopt a fully open market model of the economy. On the other hand, the Chinese government has been executing some policies which have been seen as a way of distorting trade and specifically investment flow. There has been a number of attempts by various authorities who have been trying to intervene in the situation and support the creation of an active industry regulator.

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These efforts are yet to bare any meaningful fruit hence making it quite tough to make an entry into the country’s gas market. CONCLUSION Both the UK and China seem to have a number of favorable factors which can be of great significance for any business entity interested in making an entry into the market. But it should be remembered, that despite UK’s efforts towards globalizing its economy, the law which privatizes the gas industry means a lot to a company like Wesfarmers Limited. Being a conglomerate and having gas production as one of its core units, it will not be that favorable to make considerable investments in the country. K. Business environment in China: Economic, political, and cultural factors.

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