CAPSIM Global: China PESTEL Analysis

A collection of flashcards based on the key concepts from the CAPSIM Global lecture on China's PESTEL Analysis.

PESTEL Analysis

A framework used to analyze the external environment of a business, focusing on Political, Economic, Sociocultural, Technological, Environmental, and Legal factors.

Political Environment

The political factors theoretically affecting the economic conditions and the business environment in a country.

Monetary System

The system used by a country to manage its currency, money supply, and interest rates.

One-party state

A government controlled by a single political party, where other parties are usually prohibited.

Collectivism

An ideology that emphasizes the group over the individual, often associated with more socialist or communist societies.

Hofstede's Cultural Dimensions

A framework for understanding cultural differences between countries, focusing on dimensions such as Power Distance, Individualism, and Uncertainty Avoidance.

Common Prosperity Program

A Chinese government initiative aimed at reducing wealth inequality and promoting shared growth within society.

Guanxi

A Chinese social concept defined by personal relationships and reciprocal exchanges, often viewed as essential in business dealings.

Foreign Direct Investment (FDI)

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations.

Environmental Performance Index

A metric that measures the environmental health and ecosystem vitality of a country.

Legal System in China

Characterized by bureaucratic law and the Communist Party's dominance, leading to inconsistencies between law and practice.

Belt and Road Initiative

A global development strategy adopted by China involving infrastructure development and investments in countries across Europe and Asia.

Trade Bloc

A group of countries that agree to reduce or eliminate trade barriers among themselves.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Chinese “Great Firewall”

A regulatory system that censors and controls internet access in China.

Greenhouse Gas Emissions

Gases that contribute to the greenhouse effect by absorbing infrared radiation, which China is the largest emitter of globally.

Intellectual Property Rights (IPR)

Legal rights that provide creators protection for their creations, crucial in industries involving innovation.

Deflation

A decrease in the general price level of goods and services, which can lead to reduced economic activity.