International Business for Chinese Government-myassignmenthelp

Question: Discuss about theInternational Business for Chinese Government Background. Answer: From the article, foreignness of companies act as a liability to their success in the foreign nations more especially the developed economies. It is substantial that developed economies have high competitions and not fully open to foreign direct investment. Worst of all, firms having government background of other nations are seen as more threatening to the security of specific countries, in case study, Australian government. Furthermore, price instability of the outputs are a threat to the investing companies. Prices to change drastically in particular periods making investment very uncertain and risky. Other challenges include the long procedures involved when signing contracts. This leads to delay and may cost a company basing on the price instabilities. 1 In reference to the excuses given by the Australian government on imposing high taxes on the Chinese company, the Hua Dongyi need to have a dialogue with the Australian authorities to ascertain the root cause if the high. This could be through pointing out strategies that can provide Australia as a nation, an economic advantage resulting from the economic ties. Furthermore, Hua Dongyi and the company should consider partnering with the local Australian firms to exploit the possible reduction in the taxes as result of partnering with the local firms. CITIC performance in Africa is more leveraging as compared to its investment in Australia. This can be understood from the perspective of the emerging market theories. As discovered earlier, the Australian government/ institutions have negative attitude towards foreign direct investment thence imposing high taxes on international companies. This is different Africa where there is minimal such challenges. 3 liabilities of foreignness faced by CITIC include the high taxes imposed on its operation. The fact that Australian government have a negative attitude towards the Chinese companies, more especially ones with Chinese government background, CITIC faced more challenges. The company can further its investment in other emerging economies with low tax imposition. There are always leveraging advantages due to low competition and low taxes.