Each of these forces is altering the business environment in China while creating new opportunities for multinational and national firms. Understanding the changes that are associated with the business environment of China also helps to define how businesses can collaborate with the country while using the current system, culture and expectations that are a part of the country. More important, there is the ability to understand the global alterations that are a part of the business environment in China and how this is constructing innovative measures for expansion and new products that can be used within the country.
The main concept that is applied to the business environment in China is based on the divisions of regionalism as well as the closed environment that is a part of the nation. Even though there are several components that are pushing the country toward globalization within the market, there are also several components and regulations that are causing the environment to remain closed. The flow and allocation of capital, human labor in different regions and structural changes in different regions have all influenced the environment and the expectations among different business leaders. For those in China, this is creating specific measures within the economy as well as from the expectations that are a part of the business environment (Xiaolu, Gang, 1, 2004).
The economics and expectations that are within China are not only a proponent of the environment because of the factors that influence business. Government expectations and the institutional environment have also led to specific expectations that are within the community. Each of these can carry a negative or positive influence both nationally and internationally and create a change in the firm value that is a part of different environments. The changes that