The opportunities and challenges that a Chinese firm faces while Essay

The opportunities and challenges that a Chinese firm faces while entering into Saudi Arabian market - Essay Example The present research has identified that in the recent times, it has been observed that increasing number of firms are going global which includes sectors like manufacturing, service, art, music and film among others. International business leads to enhanced flow of capital, services as well as ideas across the world. Consumers are offered with new choices and the companies are facilitated to innovate various new products as well as services. It has also been observed that international business assists in offering challenging employment opportunities to the people. Those transactions that are carried out in or with countries abroad in order to content the goals of the individuals, companies as well as organizations are referred to as international businesses. There are numerous types of international businesses such as export-import trade, foreign direct investment, licensing, and franchising and management contracts. It has been observed that since the past thirty years of operatio n, the volume of international trade has augmented from $200 billion to more than $7.5 trillion. In comparison to the global exports, there is rise in the sales of the foreign affiliates by a significant amount. The best thing that can be identified in the context of international business is that it has been successful in creating a network related to global connections that is capable of binding two countries, institutions as well as individuals because of trade, financial markets, technology as well as living standards. In the context of this study, the Chinese firm which is into retail sector wants to enter into Gulf Cooperation Council based country i.e., Saudi Arabia is considered. The Chinese firm will hire a consultant in order to gain advice on making such a move. The consultant will try to identify and offer advices on the challenges as well as opportunities when undertaking such a move into gulf countries. The project will begin with industry-specific characteristics. In order to do so, diamond model will be used. The project will also try to identify the general business contexts both national (China) as well as international (Saudi-Arabia). This will be conducted with the help of the PESTEL analysis. The next logical step followed after having identified the business context is to identify the most