Law5Cbl Final Exam
Part I: True or False 1. False 2. True 3. False 4. False 5. True 6. True 7. True 8. True 9. False 10. False
Part II a) Ten major complaints of foreign company in 2012 for doing business in China as indicated in USCBC 2012 China business environment survey results are; 1. Human resources: Talent recruitment and retention
Finding and retaining talented employees is significant challenge for foreign companies in China. According to highly competitive environment, such talents would be recruited to the most attractive company, with higher income in short period of time. Demand for qualified employees frequently outstrips availability, especially for skilled technical and managerial talents. Market mechanism put the wages of talents up to global level for some positions, leads to rising labor costs. Companies are forced to increase and stabilize their salary to attract and retain employees with skills. It also include that employees figure their salary as a top priority, not long-term compensation or benefits, thus making it very difficult to develop benefits packages conform to global best practices. Turnover rates are still high of 10 to 20 percent, as not unusual. Companies cannot retain their skilled employees. In survey, the companies summed up the overall situation:
“Operational cost in China is getting serious especially for pay and benefit and yet still lack of qualified talent in the market”
2. Administrative licensing, business and product approval
China’s licensing and approval process slows investment and company expansion. Chinese government reviews and governs all business transactions, investments, mergers and acquisitions. Companies must submit their requests to different levels of officers and organisation through a long chain of command. This stalled the progress of business and took so much time and money. The product registration is slow and delayed through duplicate testing requirements.
Part II a) Ten major complaints of foreign company in 2012 for doing business in China as indicated in USCBC 2012 China business environment survey results are; 1. Human resources: Talent recruitment and retention
Finding and retaining talented employees is significant challenge for foreign companies in China. According to highly competitive environment, such talents would be recruited to the most attractive company, with higher income in short period of time. Demand for qualified employees frequently outstrips availability, especially for skilled technical and managerial talents. Market mechanism put the wages of talents up to global level for some positions, leads to rising labor costs. Companies are forced to increase and stabilize their salary to attract and retain employees with skills. It also include that employees figure their salary as a top priority, not long-term compensation or benefits, thus making it very difficult to develop benefits packages conform to global best practices. Turnover rates are still high of 10 to 20 percent, as not unusual. Companies cannot retain their skilled employees. In survey, the companies summed up the overall situation:
“Operational cost in China is getting serious especially for pay and benefit and yet still lack of qualified talent in the market”
2. Administrative licensing, business and product approval
China’s licensing and approval process slows investment and company expansion. Chinese government reviews and governs all business transactions, investments, mergers and acquisitions. Companies must submit their requests to different levels of officers and organisation through a long chain of command. This stalled the progress of business and took so much time and money. The product registration is slow and delayed through duplicate testing requirements.