The Control of Corruption Indicator Free Sample for Students

Question: Select a Country and have a look at the Risk Indicators. What are the Implications of these Indicators for anyone wishing to conduct business in that Country? Answer: International Business According to the Worldwide Governance Indicators (WGI) project, there are six indicators of governance. The country chosen from the Australian Export Finance and Insurance Corporation (EFIC) website is China, a country in East Asia (Efic.gov.au, 2017). The control of corruption indicator refers to the extent of effectiveness that strengthens a countrys framework to prevent and combat corruption. According to the findings of World Bank in April 2016, China ranks in the second bottom quartile that makes it risky for the people to conduct business (Efic.gov.au, 2017). The company is experiencing issues such as political interference, bribery and facilitation payments when dealing with the system. However, there are several anti-corruption laws and he companies are advised to consider the type of gifts given by them as it may be considered as bribery for the foreign companies (Funderburk, 2016). The government effectiveness indicator refers to the quality of policy formulation, implementation and independence from political pressures. According to the findings of World Bank in April 2016, China has high government effectiveness (Efic.gov.au, 2017). This reduces the risk of doing business in China as it fosters a benign context for private investment. The President of China, Xi Jinping is formulating and implementing effective business policies that the country is able to manage without interruptions in policies or government services. However, there is prevalence of red tape that hinders business activities in China (Funderburk, 2016). Therefore, China has different dimensions of risk and governance that enhances or prohibits the companies from doing business in China. References Efic.gov.au,. (2017).China.Efic.gov.au. Retrieved 29 March 2017, from https://www.efic.gov.au/education-and-tools/country-profiles/asia/china/ Funderburk, C. (2016).Political corruption in comparative perspective(1st ed.). Abingdon, Oxon: Routledge.