Case Study

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DMG-Shanghai Case Study
1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China?

* In china there a so many laws so it is very important to establish go will when doing business. Many business men use guanxi and guanxiwang as a way to establish grounds and create great reputations. Without these no business would get done and it is almost like a loop out around the law. What could be wrong by law can actually be look in a different light when persuading officials so it is a huge advantage.

2. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all the rules and regulations, rather than --trying to find a way around them as Dan Mintz apparently does?

* In china a business that obeys all the rules and regulations will not get anywhere. Because guanxi and guanxiwang establishing these with other businesses will help a business expand its ground in china but this comes with a price. In order to gain and move up in the business of china they have to paid and in return gain business interest that is what we call bribery in the US but its acceptable in china.

3. What are the ethical issues that might arise when drawing upon guanxiwang to get things done in China? What does this suggest about the limits of using guanxiwang for a Western business committed to high ethical standards?

* The ethical issues here would be in some form of bribery according to how its being stated in the case study. But no I do not think a a western business could strongly state committed using guanxiwang. It might be about money all the time but it’s the fact that this represents doing a favor for a favor in return and if cannot comply then a business reputation could be tarnish. Businesses are not willing to take chances like that all the time. Its acceptable in some cases like for doing business in china only just to look at the advantages it will...
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