Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely follow. The most successful of these companies are the ones that acknowledge the cross-cultural differences between Chinese and American lifestyles and find a way to embrace and cooperate with those differences. Those that fail to grasp these important differences often fail.…
In that study, nearly half of the companies reported flat or falling revenues and tougher business conditions. Furthermore, three-quarters of participants agreed with the statement that “foreign businesses are less welcome than before in China.” The survey provides one of the only authoritative and quantitative pieces of evidence used in the article. But the statistics induce some questions. How much is nearly half? Why are flat revenues combined with falling revenues, and how do these compare to the overall Chinese economy? Finally, if businesses believe they are less welcome, how much do they attribute this to Chinese governmental policy? The survey somewhat supports the premise that anti-foreignism is affecting businesses; but it hardly supports the thesis that the degree of anti-foreignism is so high that the U.S. government needs to rethink its relationship with…
Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) which is extremely impressive considering all other developing countries have experienced a 4% increase annually (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4). Prior to the global financial crisis in 2005, the economic growth had averaged 9.5% over the past 2 decades (Economic Surveys: China 2005, (September 2005, P2) During the global financial crisis in 2008-2009, exports shifted from 20 percent annual growth to an annualized contraction of more than 25 percent in early 2009 (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) However, prompt and vigorous policy actions, as well as swift adjustment in the labour market, helped growth pick up by the second quarter of 2009, putting China in the lead of the global recovery (Economic Survey of China 2010: Achievements, prospects and further challenges, ( February 2, 2010) The success of the Chinese Economy recently, especially during the economic , crisis has been speculated to be the cause of the popular government owned companies. Registered private businesses grew at a rate of 30% annually from 2000 to 2009 affecting different industry sectors from oil to banking (Entrepreneurship in China: Let a million flowers boom (March 10, 2011) and has been the…
The following examines the nation of China and its trade relations with the world, particularly the United States. The focus is primarily on China’s culture and how it impacts business dealings with other countries. Areas examined include: Religion, Management Philosophy, and Business Etiquette. Also discussed is China’s growing status as a world super power and how that has impacted the global business landscape. Likewise, various trading partners are examined and the effects of doing business with China, specifically for the United States. Points of concern for the United States are things such as the outsourcing of jobs and domestic unemployment. China has become the 2nd largest trading partner for the United States. The majority of that trade is in Imports of Chinese goods to the US. With all of the tension between the two nations, past and present, it is a relationship that is extremely volatile in nature.…
The uncontrollable factors such as the Chinese economy, political climate, technological, socio-cultural and legal factors are first extrapolated showing that China is the second largest economy in the world and plays an influential role in the global economy. The robust economy has given rise to high levels of disposable income, leading to increased demand for foreign products, and in particular, Australian wine. Politics and the economy are closely inter-related, with the Chinese socialist market economy being governed by the Communist party of China, which may pose certain political risks for a foreign organisation entering the market. Chinese business practices are also interwoven with socio-cultural elements highlighting that the Chinese seek to form close personal relationships with trading partners. A hybrid legal system that is difficult to navigate, coupled with difficult distribution infrastructures may pose as barriers to entry for foreign organisations.…
China is a major supplier to almost everything in the US, from child toys to cars. But, behind this major manufacturing country is a complex government. Due China’s major promotional campaigns, lack of concern for the environment, and revolting citizens, has caused them to establish a stable and effective government.…
Dunfee T.W., Warren D.E.(2001). Is Guanxi Ethical? A Normative Analysis of Doing Business in China. Journal of Business Ethics, Vol. 32,pages 191-204.…
The Central Government of PRC had made it difficult for foreign compaies to enter the PRC market. The only acceptable method of entry was through a joint venture with a local chinese firm. To attract foreign investors, the equity joint venture was established. This meant that the foreign company would invest a maximum of 60% ownership share into the entity, while the remaining 40% would be invested by the local chinese company.…
References: Company Law of the People 's Republic of China, 2005. Retrieved April 24, 2010 from http://www.chinadaily.com.cn/bizchina/2006-04/17/content_569258.htm…
Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion business model. The Café has two important elements that differentiate it from its competitors, which were offering nutritious soup, salads, and sandwiches, as well as, providing exceptional service for their guests in a genuine, and friendly manner. The company’s philosophy is satisfying customers’ needs by trying to make an impact on their life and look for the long run profit as encouraged by founder, Howard Leventhal to his staff.…
What makes the selection of a joint-venture so important is that even though China’s Choice of Law provisions follow international practices; this doesn’t apply for Joint-Ventures. The only time a foreign party within a Joint-Venture may have a choice of law is when settling disputes (Gao, 1989, p.560; Wei, 2000, p.40; Sino Foreign Joint-Venture Law Article 2).…
Yan Ailing1, Jiang Hong2 School of Business Administration, Zhejiang Gongshang University, Hangzhou, China. E-mail: alyan@foxmail.com. 2 Institute of Policy and Management, Chinese Academy of Science, Beijing, China.…
The purpose of this essay is to present a comparison between the Moroccan economy and the…
Lichtenstein, N. (1993). Enterprise reform in China. 1st ed. Washington, DC (1818 H St., NW, Washington 20433): Legal Dept., World Bank.…
PWC., 2013. Doing Business and Investing in China. [pdf] Available at: http://www.pwc.es/es/publicaciones/economia/assets/doing-business-in-china.pdf [Accessed 18 Aug 2013]…