This essay will analyze the business environment of United Sates and China in terms of globalization and International managerial aspects. United States is considered as the largest economy in the world which represents twenty two percent of the global economy. It has a mixed economic system and the US dollar is the most utilized currency in worldwide transactions with several countries using it as their official or de-facto currency. United States is also the largest oil and gas producer globally. On the other hand, China is categorized as the second largest economy of the world just behind United States as per nominal GDP. China is believed to be a hub of manufacturing and exporting goods. It is also considered as the largest trading nation of the world. This essay will identify and examine major political, legal, economic and social issues in both countries. Furthermore it will highlight different strategies and theories which may assist International managers in countering the issues they may face in these two countries.
Political issues are government activity which may impact business operations and management. International managers must have knowledge about the risks which may affect firm. The political issues are mainly influenced by the nature of government type and its constitution and the features and policies of the political parties. The first point looked upon by managers are whether the country they intend to operate in is politically unstable. If so, industries may be nationalized, private property may be seized or destroyed and there may be a ban imposed on business operations. Likewise managers must be aware of the trade and investment restrictions that may be imposed on their business. Generally governments can put limitation on the free international exchange on goods and services. Governments may also adopt certain import policies regarding