Prepare a paper evaluating global value chain challenges that exist within the selected countries.

This paper will examine global challenges in the value chain for an hypothetical company operating in Brazil and China.

Legal and ethical concerns: China’s lack of effective protection for trade secrets and intellectual property rights have raised questions. According to the US Trade Representative’s Office, “China’s lack of effective protection of trade secrets and weak enforcement of intellectual property rights (IPR) continues to be of concern” (USTR, 2021). The Chinese government is known for requiring foreign companies to give up technology in order to gain market access. If they possess trade secrets or proprietary technology, this could be a problem for our hypothetical company.

Brazil’s corruption problem has been an ongoing issue. Transparency International (2020) raised concerns over corruption and the lack of transparency regarding government decisions-making. Our hypothetical company could face challenges in Brazil’s legal and regulatory environments.

Political Stability. China’s one-party government system has the Chinese Communist Party as its monopoly over all political power. While there is a National People’s Congress, the Communist Party controls its membership and the government has been known to suppress political dissent (Freedom House, 2020). This uncertainty could lead to political risk and policy changes for the hypothetical organization.

Brazil’s multiparty system is well-functioning and there are regular elections. But, recent concerns have raised questions about the stability and political polarization of Brazil (BBC 2018). There have also been demonstrations and protests against corruption in Brazil (BBC 2018, 2018). These protests and demonstrations could cause uncertainty for the hypothetical company.

Financial considerations: There have been concern about currency manipulation in China and the lack of transparency regarding government economic data. China also has high levels of state ownership of key industries. This could pose challenges to our hypothetical company in terms of financing access and competition with state-owned companies (USTR, 2021).

Brazil’s public debt is high and the country has had problems with inflation (IMF 2019). The Brazilian currency is volatile over the past few years. (IMF 2019). This could pose problems for the hypothetical company in terms of accessing financing and currency risk.

Infrastructure: China’s infrastructure has seen significant investment in the last few years. This includes transportation, energy, and telecoms. (World Bank 2020). There are concerns over insufficient infrastructure in rural areas or less developed regions. (World Bank 2020). This may pose logistical and distribution challenges for the hypothetical company.

Brazil’s infrastructure is in poor condition, especially with regard to transportation and logistics. There have also been problems with insufficient sanitation and limited access to clean water (World Bank 2020). All of these factors can pose problems for the hypothetical organization, both in logistics and distribution.

Physical Geography. China has a vast and varied country, with many different climates. Our hypothetical company could face logistical and distribution challenges. China also has an enormous population, and high levels of urbanization. These could present challenges when it comes to accessing resources and labor.

Brazil is a diverse and large country that has a variety of terrains and climates. This may pose challenges to our hypothetical organisation in terms logistics and distribution.

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