Challenges and Advantages of Doing Business in China
With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States. The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of people that China has and the moderization movement that China is currently undergoing. Opportunity exists everywhere one looks. Modern day China is all about becoming as Westerinized as possible. Whether it is buying the latest edition of the iPhone or carrying around the most fashionable luxury bag, the money that the Chinese people have is just waiting to be spent, and if a aspiring businessman can find his niche in this growing economy, then he can really thrive. Another advantage of doing business in China involves the much cheaper workforce in China. Doing business is all about how much it costs to make a product and how much that product can sell for. By decreasing the costs of making the product would allow that product to be sold at a much more competitive price compared with making that same product in the United States.
One of the challenges involved with doing business in China involves the cultural barrier. This includes both the customs and the language differences. The customs of Chinese and Americans are really different. Without a good understanding of the Chinese culture, doing business in China could be a diaster. Something as simple as giving a gift to a Chinese businessman could go wrong if the...
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