Assessing and controlling business risks in China

Evaluating business risks becomes especially precarious in volatile information-poor emerging markets where issue-based isolated models of risk assessment no longer seem to apply. In particular, multinational corporations (referred to as "multinationals") seem not to use more established models for evaluating business risks in the second largest market for foreign direct investment (FDI), China. First, this article notes how an integrated framework of business risks may pertain to multinationals' operations in emerging markets. Next, it applies aspects of this framework to appraising business risks in China and highlights some strategies that multinationals are implementing to control risks. Finally, it offers recommendations on an effective integrated framework for business risk analysis.

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