Baosteel Europe, Location Advantages

Question One

Location advantages (or country specific advantages)
  a. Economic advantages consists of the quantities and qualities of the factors of production, transport and telecommunications costs, scope and size of the market。
  b. Political include the common and specific government policies that influence inward Foreign Direct Investment flows, intrafirm trade and international production.
  c. Social, cultural advantages include psychic distance between the home and host country, language an cultural diversities, general attitude towards foreigners and the overall position towards free enterprise.

Hamberg, Germany
1. Diplomatic, culture & economic relations: Sino-German relations were formally established in 1861, when Prussia and the Qing Empire concluded the first Sino-German treaty during the Eulenburg Expedition. Ten years later, the German Empire was founded and the new state inherited the old Prussian treaty. The relations were on the whole, frosty, with Germany joining imperialist powers like Great Britain and France in carving out spheres of influence in the Chinese empire.
    The Germans also participated in the crushing of the Boxer Rebellion. After World War I, relations gradually improved, though this would gradually change during the 1930s as Adolf Hitler allied himself with Japan. During the aftermath of World War II Germany was split in two states: a liberal democratic West Germany and a communist East Germany. Cold War tensions led to West Germany's alliance with the United States against communism and thus allied against China. The Eastern part was allied through the Soviet Union with China. After the German reunification, relations between Germany and China gradually and vastly improved.
    Germany is China's biggest trading partner and technology exporter in Europe, and the amount of German investment in China ranks second among European countries, after the United Kingdom.
    China is Germany's second largest...