Shui Fabrics Question 1 Ans

Topics: Joint venture, China, Interpersonal relationship Pages: 4 (1551 words) Published: January 27, 2012
Economic factors include economic growth, interest rates, exchange rates and theinflation rate. These factors have major impacts on how businesses operate and makedecisions. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and supply and price of imported goods in an economy. There are economic differences that influence the relationship between the partners at Shui Fabrics. Chiu Wai, operated Shanghai Fabrics LTC located in China, before it became a joint venture with Rocky River Industries in the United States. When the companies became a venture, Chiu Wai became the Deputy General Manager for Shui Fabrics in China and venturing company Rocky River Industries located in US. Ray Betzell who is the General Manager for Shui Fabrics came to China from Rocky River Industries. Many companies who do business in others countries and cultures fail miserably. Managers must do their homework and learn the business ethic and culture lifestyles before even considering venturing into markets in different counties. To me it seems like neither of the managers did their homework and are having problems maintaining the economic factors that influence their company. A developing country is a non-industrialized poor country that is seeking to develop its resources by industrialization. A developed country is a country that has a high level of development according to some criteria such as income per capita and industrialization.

Political-Legal factors include discrimination, consumer, antitrust, employment, and health and safety law. They also include how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restriction tariffs, and political stability. These factors can affect how a company operates, its costs, and the demand for its products....
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