FIN630-1104A-07: Global Financial Management
Managing Multinational Operations
Individual Project 4
October 30, 2011
According to data collected by Doing Business, starting a business there requires 14 procedures, takes 38 days, costs 3.5% of income per capita and requires paid-in minimum capital of 100.4% of income per capita
China’s new corporate income tax law unified the tax regimes for domestic and foreign enterprises and clarified the calculation of taxable income for corporate income tax purposes.
Procedures to export | Time (days) | Cost (US$) |
Documents preparation | 14 | 250 |
Customs clearance and technical control | 2 | 70 |
Ports and terminal handling | 3 | 85 |
Inland transportation and handling | 2 | 95 |
Totals | 21 | 500 |
In Chinese business culture, the collectivist way of thinking still overcomes, even in areas trying out free enterprise. "Saving face" is an important concept to understand the Chinese. In Chinese business culture, a person's reputation and social standing rests on this concept. Causing embarrassment or loss of composure, even unintentionally, can be disastrous for business negotiations. So be careful to avoid causing someone to "lose face" by insulting, criticizing or embarrassing him or her in front of others, or by treating the person with less than the proper respect due his status in the organization(China-window.com). The Chinese are very keen about exchanging business cards, so be sure to bring a plentiful supply. Ensure that one side is in English and the other is in Chinese, preferably in the local dialect. Include your professional title on your business card, especially if you have the seniority to make decisions. In Chinese business culture, the main point of exchanging business cards is to determine who will be the key decision-makers on your side. If your company is the oldest or largest in your country, or has another...