1) What is the likelihood that the Canadians will be able to reach an agreement with the mainland Chinese and not have to go back to their Taiwanese supplier? Explain. The likelihood that Canadian people will be able to reach an agreement with the mainland Chinese is unlikely. Reaching an argument can be tough because there are only ninety days of receipt for a 5years agreement. Also, the People's China Republic (PCR) like to take their time when making a decision. If they get this agreement, Canadians would do lot of concessions because the Chinese have the better position. 2) Are the Canadians making a strategically wise decision in letting the Chinese from the PRC handle all the manufacturing, or should they insist on getting more actively involved in the production process? Defend your answer. The Canadians should insist on getting more responsibilities in the production process to make sure that the quality and the management of the stock and the production line is the same in Taiwan. Furthermore, it is not a wise decision to let to the Chinese free hand in manufacturing their goods because if they screw up in production, the Canadian’s don’t have insurance to pay for it. During the five years, they will have no more responsibilities over their production. The Canadians may lose more money because of that than if they stay with the Taiwanese company, even if the labor cost is more expensive. 3) What specific cultural suggestions would you make to the Canadians regarding how to do business with the mainland Chinese? Knowing the differences between their culture and the Chinese culture is imperative in this kind of business. For example, the Canadians have to adopt a certain conservative approach from the Chinese, especially during the meeting and the approach of doing business. The Canadians must be neutral and do their best to have a good connection with the Chinese in order to obtain their agreement.