INTERNATIONAL BUSINESS CASE STUDY: CHINA
Dr. Patt. Burusnukul
China is one of the oldest civilizations dating back over 10,000 years. The history of China is exciting and as diverse as the topography of this region. From the peaks of the Himalayas to the scenic beaches of Yalong Bay. China has scenic and agricultural areas. China has the highest population and the fourth largest land area in the world. Caterpillar is a multi-national company engaging in foreign business within China and has been successful in China for decades. China is the world’s largest dirt-moving manufacturer. Caterpillar and China are partners in progress.
A Brief Overview of China
The People’s Republic of China is located in eastern Asia. It is bordered by fourteen countries and covers an area of more than 3.6 million square miles. This is slightly smaller than the U.S. and China ranks fourth in the world for land area after the USA, Canada and Russia ( CIA,Unknown). China also has the Himalayas in the North and tropical regions in the south. Culture
Chinese culture is rich in arts, beliefs, customs, and dates back many centuries. China is the most populous country on the globe with an estimated 1,331,460,000 people. The PRC officially identifies 55 ethnic minority groups in China in addition to the Han majority. The Han Chinese majority with 91.5%, Zhuang, Manchu, Hui, Miao, Uighur, Tujia, Yi, Mongol, Tibetan, Buyi, Dong, Yao, Korean, and other nationalities 8.5% (CIA, 2012) Since 2005 the combined population of officially recognized minority groups is around 123.33 million, about 9.44% of China’s total population (Unknown, China Today, 2010). Social Structure
The social structure in China is ruled by the Chinese Communist Party (CCP) which came to power in 1949 and established the People’s Republic of China (Unknown, China, Government). The CCP controls the content of the internet and media and only shows the citizens what is approved by the CCP. One reason they might regulate American imports is to avoid too much of a cultural influence from the US. All broadcast media is owned by the CCP or a government agency, no privately owned television or radio stations. (Pearson Educaton Publishing as Fact Monster, 2000-2006). The family is also very important to the Chinese peoples. The family structure in China is comprised of four categories, nuclear, linear, joint and other. Nuclear families consist of the couple and their child(ren) or simply the couple. Nuclear families have become more common because of modernization and other social factors. Couples in China are allowed to have one child unless the first born is a girl then they are allowed to try again for a male, due to the male child being favored. The reason they implemented the one child policy was to help control the growing population. The impact of the changes are that parents have more time to spend with children since they do not have to take care of elderley relatives. Men and women are much more equal than the in the past, predominantly in the cities. Children like here in America are expected to be obedient and respectful of elders. The Chinese children of today enjoy more freedoms than their relativcs in the past. Parents expect children to excel in school but allow greater tolerance towards careers, leisure activities and romantic partners. (Tanner, 2012) Religion
Zen Buddhism and Taoism are the two most practiced religions. The Chinese society closely adheres to the precepts of Taoism. Taoism is inclined to simplicity in all things. Zen Buddhism has had an extensive following in Chinese history; its practice influenced the daily habits of a great number of people. Zen Buddhism may be the best way to illustrate the mysterious quality of oriental culture. (Unknown, Traditional Lifestyle, 2010) Christianity is not as widely practiced in China same with the Muslim religions. Daoist...