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Nokia - Political Risks and Resolutions of Doing Business in China

Visit its website at and focus your attention on what this well-known MNC is now doing in Asia.

1. What political risks does Nokia face in Asia, particularly China?
2. How can Nokia manage these risks?
3. How can effective international negotiating skills be of value to the firm in reducing its political risk and increasing its competitive advantage in this area of the world?

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According to a special report on doing business in China, Jim Hemmerling, Senior Vice President of Boston Consulting Group in partnership with the Wharton University of Pennsylvania, suggested multinational corporations (MNCs) "that have had the most success in China are those whose top managers have gone out their way to stress the importance of their China businesses in relation to their global operations" (Mark and Hammonds, 2013, p. 1).

Nokia was forced to merge its infrastructure network with Siemens in an attempt to compete with China's Huawei, which is number two in the world's mobile infrastructure equipment provider. China has a history of maintaining a culture of political bribery and corruption. The economy is slowing down, compiled with restricting problems. There are also high governmental licensing fees, mounting social pressures and public relation campaign crackdowns against foreign companies which add even more political risks. The environment for MNCs in China is growing tough ...

Solution Summary

This post comprise 559 words and will give the student a more comprehensive look into the risks that may be involved for MNCs doing business in China.