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

International Business - Essay Example These basic characteristics of Hong Kong assist the investors to invest more in the regional and global markets. Global reports state that Hong Kong continues to be the Asia’s second and world’s 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 business within the region. Hong Kong government has implemented advanced measures in endorsing a market that entails policy related to minimum government interference. In Hong Kong, foreign investments are readily welcome and there exists no law for protecting the local business against the international competitors. Another advantage which Hong Kong enjoys is its location in central Asia from where all the key markets are at a distance of merely four hours by air (PwC, 2012). This report intends to discuss the strat egic operational facets related to a major British international retailer, which wants to expand its business in one of the Asian Dragon’s i.e. Hong Kong. It provides an insight about the implications of political, cultural, economic and ethical risks associated with the foreign business. Identification 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 aim of the report would be to reveal the attractiveness of Hong Kong in terms of potential return on investment. Based on the analysis, the feasibility of the nation would be determined and accordingly recommendation would be placed to the management of the retailer whether it can invest or not. Critical Analysis of: Political Risk Political factors of any region frame an important consti tuent 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 many of the areas. Furthermore, stability in political conditions further increases the foreign business opportunities by lowering the risk factors. Considering Hong Kong with regard to the political condition, ‘The HK Special Administrative Region (SAR)’ was basically headed by Donald Tsang, whose tenure of being the Chief Executive ended up in the year 2012. Furthermore, Hong Kong is considered to be a free and an open society, where the courts are free to take indep endent decisions, human rights are greatly respected, stable law is abided by the citizens and they are empowered with the ability of changing their government. The various political parties being prevalent within the