Dmg Shanghai

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QUESTION 1: Why do you that it is so important to cultivate guanxi and guanxiwang in China?   ANSWER 1: Guanxi literally means relationships, although in business settings in can better be understood as “connections.” The concept of guanxi is deeply rooted in Chinese culture and Confucianism. The Chinese will often cultivate a guanxiwang, or “relationship network,” for help. In China, there is a tacit acknowledgement that if you have the right guanxi, legal rules can be broken or bent. Mintz made connections with two Chinese men who had access to high ranking government officials. Through these men, Mintz was able to secure permission to film commercials in locations that are normally closed to outsiders.   Guanxi and guanxiwang are essential to business in China. It is an important mechanism for building long-term business relationships and getting business done in China successfully. There are so many laws that without guanxi and guanxiwang nothing would get done and a business would go out of business. The connections that a businessman makes can either make or break a deal. A deal gone well will give that businessman prestige and allow for him easy access to other resources in the future. QUESTION 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 of the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently does?   ANSWER 2: Personal power and relationships or connections (guanxi), rather than the rule of law, have always been the key to getting things done in China. Most students will probably agree that companies that play by the rules in China will probably find it difficult to compete.   China is a country filled with people who will not do anything for free. There is always a cost. This is called bribery in the United States and is a crime under bribery law as well as white-collar law. The business that tried to follow all of the...
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