Country Analysis

The national analysis must analyze national analysis projects in the political, legal, economic, social and cultural environment - the investment environment of the target country. Sensitivity to specific factors varies from project to project, but all analyzes are affected by specific factors. Therefore, companies need to ask three questions about the investment environment of a country. (1) How important is the investment environment for the success of the project?

According to Sullivan (2002), it is important to conduct domestic and market analysis and internal SWOT analysis when companies start to consider international expansion. However, "Because countries with low risks and infrastructure are not suitable for business activities despite the possibility of market risk", it is necessary to carry out national analysis first (p. 364). The national analysis consists of three main categories: economy, politics, and law. This includes the business environment, economic situation, currency issues, government laws and policies, and the ethical environment. In assessing these situations in China, I studied political and regulatory systems, anticompetitive practices, product and service standards, intellectual property, financial markets, and monetary policy.

A brief analysis of the judicial and legal framework of selected Asian countries shows the process of evolution. In most countries, there are several laws to protect private property and intellectual property. However, due to the lack of political will, many of these legal initiatives are invalid, and this is a symbol of the central and lower level of justice continuing to attach to the national enforcement agencies. In addition, day-to-day corruption reduces opportunities for poor people to access justice. Therefore, the weakness of the rule prevents an increase in investment flow from foreign countries and an increase in export opportunities.

Department of Administrative Development and Management, Department of Economic and Social Affairs