Risk assessment of American small and medium-sized enterprises investing in China
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Authors
Busa, Rakesh
Cheepirichatty, Naresh
Issue Date
2009
Type
Thesis
Language
en
Keywords
Engineering management
Alternative Title
Abstract
American small and medium-sized enterprises (SMEs) have recently drawn increasing interest in China. The enterprises in this paper are categorized into the second wave companies since they follow the footsteps of other companies, which are mostly large companies. The primary aim of SMEs is either to sell products on the ever expanding Chinese market or to utilize the low cost production in China. Although China’s rapidly-growing market offers tremendous opportunities to American investors, its rapid evolution presents new challenges.
American SMEs in China are facing new and different challenges due to limited resources, low cost setup, and less knowledge about the Chinese market. The focus of this paper is to identify the risks faced by American SMEs in China and propose strategies for minimizing some of those risks. The two main risks faced by American SMEs are intellectual property rights and government related risks. The reasons for poorly managing um risks are discussed. This paper is to present a risk management process for doing business in China. By using this process the SMEs will be better prepared to face the upcoming challenges.