The Rise of China and the Subsequent Re-Shaping Of Business Essay - 1

The Rise of China and the Subsequent Re-Shaping Of Business Environment for MNEs (Multi-National Enterprises) - Essay Example The researcher states that modern era globalization has taken its present shape due to three primary reasons: technological innovation leading to worldwide networking and integration; global integration of emerging economies of developing countries; and opening up of by previously closed economies of countries like Brazil, India, and China. MNEs (Multinational Enterprises) are the product and the most visible aspect of globalization. A   MNE controls material  production  and/or provides services  to a large number of countries worldwide. MNEs conduct their operation (material production) in one country, which is generally termed as the ‘host country,’ while base their management activities in another country, referred to as the  Ã¢â‚¬Ëœhome country.’ Some of these MNEs are large and powerful, often operating with budgets that are more than the GDP of some of the developing nations in the world. The emergence of MNEs along with globalization is evident w hen we find that during the 1970s there were around 7000 MNEs, which at the turn of the century skyrocketed to around 60000. Around the same time, we find that the world’s largest MNCs and MNE’s (top 1000) accounted for almost 80% of the global industrial production, while the top 100 corporations and enterprises were responsible for 4.3% global GDP. At the core of globalisation and the rise of the MNCs and MNEs, is the emergence of China, as an economic power; and this article will examine the rise of Chinese economy and its particularly good relationship with various MNEs, and the recent break in this ‘good’ relationship leading to re-shaping of business environment for the MNEs in China.