Multinational Firms in China

Business

Change in business may be seen in different ways by different people. Even if something good happens to a company in might not be the same case for the others. One of the ways businesses attract a lot of attention is whenever one company decides to open up their first ever store in a certain country. Usually, people are excited with the arrival of such companies especially when it comes to food.

However, the arrival of multinational companies to new countries could also be seen as both good and bad. It could be seen as good in a way that new companies mean that the economy is attractive or stable enough for multinational companies to consider it but at the same time it could be seen as something bad because this could mean a tougher competition for the local competitors.

When we talk about multinational companies we are talking about huge companies that own a lot of brands. For example, there are companies that own multiple brands in a certain market. In clothes some companies some may be focused on casual wear others in formal wear and also another one for sportswear. Even if there are different smaller companies in the same market they are still owned by one company.

The fact that these companies own a lot of smaller companies means they have enough capital to invest in any country it only depends they are willing to and of they see it as something where they can expand and earn a lot of money from. However certain taxes may apply to these multinational companies so that the prices of their products would remain competitive as compared to the local companies.

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In China, there are already a lot of multinational companies that are invested in the country and also a lot of huge multinational Chinese companies that invest in other countries. Since China has recently opened up its markets and economy for international companies a lot of brands have already started to invest in China. From the US alone companies that own brands such as KFC, Taco Bell and McDonald’s are already present in the market.

When it comes to multinational companies within the region brands from Korea and Japan are already present in the automobile market despite having issues regarding the Rape of Nanking. Even if China might not have the best business relations with some of these countries they have still decided to invest due to the size of the economy of China and its population. Aside from this China also has one of the fastest growing economies which make it even more attractive to companies from different regions.

Aside from the multinational companies invested in China, there are also a lot of multinational companies based in China. A lot of these companies in China have taken aggressive actions when it comes to business in different regions. Just recently China has started to become known for its automobile and mobile phones. A lot of their products could easily be compared to those that already exist in the market.

These multinational Chinese companies have also started to buy out companies even from the US that are struggling. A lot of Chinese companies have started to acquire departments of different companies, especially from the US. It could not be denied that a lot of Chinese companies have a lot in terms of capital which is why even if they do not have a huge business they have a lot of potential to buy other business which is already well known. Multinational companies have a huge impact on the economy which is also one of the reasons they are able to easily enter other markets.