Political System In China

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Introduction Political system is an important factor which determines the performance of transnational company. Different countries have their different local political institutions. When companies enter a country, they must invest in and seek to gain the organizational legitimacy, at the same time, they also need to consider the societal embeddedness of companies in the institutional context. To some degree, the level of embeddedness determines whether retailers can be accepted by local citizens. Therefore, when they enter a new market, they need to consider whether they are suitable for the institution. Studying the political system will bring benefits to companies on decision making, for example, the timing and mode of market entry. Once the mode of entry or the marketing strategy is inappropriate, with the decreasing of recognition, the companies may be forced to withdraw from the market. Therefore, it is important and naccessary for transnational companies to study the political system of particular country. The purpose of this paper is aimed at helping people who are willing to invest in China to understand more about China’s political and business situations.

Political System Constitutes of China
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The first level, which is also the highest level of power, is the supreme law - the Constitution of the People 's Republic of China. The Constitution is the fundamental law of the state; it stipulates that the country 's fundamental political system, economic system, the basic rights and obligations of citizens, which has the highest legal effect, is the core of China 's legal system and commander in chief. The second level is the sum of laws from seven legal branches. These seven legal branches are the related law with Constitution, commercial law of civil law,administrative law, economic law,social law, criminal law and procedural law. The third level is administrative regulations, local regulations and

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