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ABC Limited is a leading entertainment, artists and performance brokerage agency in Australia. ABC Ltd founder...

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Operations Management

ABC Limited is a leading entertainment, artists and performancebrokerage agency in Australia. ABC Ltd founder Mr. Right realisedthat China is a world-class media and entertainment platform andwants to begin penetrating the firm’s popular musical, magic showsthere, but ABC Ltd has little international experience. Mr. Rightis unaware of the various types of investment and nontariff tradebarriers that ABC might face in China.

Q1. What types of investment barrier(s) might ABC Ltd face ifthey decide to enter into the China market? (around 100 words)

Answer & Explanation Solved by verified expert
3.7 Ratings (544 Votes)
There are both preestablishment and postestablishment restrictions that foreign businesses including those in the USA may face when they wish to start operating in China a socialist state Preestablishment phase issues the Chinese Ministry of Commerce and the National Development Reforms Commission classifies FDIs as restricted prohibited encouraged or allowed in the catalog that guides foreign investment in various industries of China These guidelines may not be fixed and undergo adaptations over different periods and economic scenarios Hence the FDI conditions are not guided by the market conditions but    See Answer
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