Introduction   * Increased focus on EMs by multinationals due to saturation of developed markets.   * Most MNCs have previously focused on the economic elite within the EMs.   * Examples of EMs are China, Brazil and Russia.   * Ems are characterized by low operating costs and a large population of highly increasing middle income earners.   * Main strategy should focus on innovation aimed at meeting the special needs of the market at affordable rates. Purpose   * To analyze a major Emerging Economy (EM) and see the potential of investing in such an economy.   * The Chinese economy will be used as a sample an Emerging economy .   * To access the possibility of transferring an existing manufacturing plant from an already saturated economy in the developed world to a merging economy inoder to tap the potential of that economy in the fast developing third world . Counrty Summary-China   * Existence of an excellent product market infrastructure compared to other EMs.   * China has a good product market infrastructure.   * China is very attractive to FDI.   * Domestic firms are dominantly SOEs.   * China is very open to FDI.   * Government policy is attractive. SWOT Analysis Streghts   * Market availability due to large middle income population.   * Access to cheap skilled labor   * An excellent market infrastructure   * Existing Production platform within region   * Good supply source of raw materials Weaknesses   * There exists a gap in level between Chinese industrial products( mainly middle level) with the international level which are more advanced.   * Rigid management and operations   * There is creative spirit   * Lack of proper technical equipment Opportunities   * Gradual reduction of tariffs on imports of raw materials   * Decline of import tariffs for some developed economies.   * Quota restrictions have since been completely eliminated Threats   * Severe constraints in resources.   * Degradation of the environment has highly intensified.   * Increase in counterfeit products by rival companies.   * The market is open to new entrants who may eat into the company’s market share.   * Overproduction of industrial products leading to reduction of profit margins.   * Increase of Emerging economies thereby slowly washing our the low labour strategy. Pestle Analysis Political   * There exists an open and stable political system in China.   * Gradual reduction of tariffs on imports of raw materials.   * Quota restrictions have since been completely eliminated.   * Investment into the domestic market by government to spur infrastructure development.   * Imperfect laws and regulations in China. Economic   * Rapidly growing economy, GDP currently sixth in the world.   * Existence of low cost labor and skilled human capital.   * Increased purchasing power of the majority population due to the high economic growth rate in China. Pest Analysis Social   * Technology was initially restricted to industries but has since been adapted by even small scale home users.   * Development of internet has made the Chinese people have access to information thereby embracing technology due to high exposure.   * The Chinese people have found it economical to embrace technology compared to use of traditional methods to do their work. Technologica