...Success in China For a foreign business, success in China is largely hinged upon the company’s ability to adapt in a different environment and to understand (and be accepting of) how much they simply don’t know. A company looking to enter the China market will quickly realize either they are in unfamiliar territory and proceed prudently with the right help, or, maybe because of ignorance or anxiety, they will act irresponsibly and fail. Foreigners familiar with China may recognize that there seems to be an unending number of misunderstandings between China and the rest of the world. In a business context, these misunderstandings might range from scheduling a business trip to China during Spring Festival to not considering the government in a market entry plan. Companies seeking to enter China must do their homework and prepare to be flexible. Success in China can be extraordinary, but it is not won easily. In China, the government is omnipresent. Depending on the nature of your business, the government may figure into every step of your China strategy. It is important to remember that the Chinese government’s #1 priority is watching out for China. It would be foolish to think otherwise. The five-year plan is not a suggestion as much as it is a mandate. That means, to be successful in China, your goals must align with the goals of the government at every level. Indeed, a successful plan would help the government to reach its goals. Demonstrating an interest in the well-being...
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...AE514 Review Questions 1. What is the environment Kuznets curve and what are main explanations? The EKC says that the pollution will first increase with the level of GDP per capita, reach maximum at around $8,000 and then decrease at higher levels of income. The policy implications of this finding according to some are grow first and then clean up. Some have argued that economic growth is a panacea or “cure all” for environmental degradation, “in the end the best and probably the only-way to attain a decent level of environment quality.” Another writer claims that existing environmental regulations by reducing growth may actually be reducing environmental quality. Explanations for Environmental Kuznets Curve: a) A natural progression of economic development from clean agrarian economies to polluting industries to clean service economies. b) Advanced economies exporting their pollution to less developed countries. c) The internalization of externalities requires relatively advanced institutions for collective decision-making. d) Another model is that below a threshold level of pollution only the dirtiest technology will be used. e) Environmental quality is a stock resource that degrades over time. f) Demand for environmental quality overtakes supply ultimately. g) Decreasing costs in pollution abatement. One of the important implications of an environmental Kuznets curve (EKC) is that growth and development in a country...
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...Introduction China China is believed to have the oldest continuous civilization. China has over 4,000 years of verifiable history. Beijing is the capital of China and is the focal point for the country. The official language is standard Chinese, which is derived from the Mandarin dialect. Most business people speak English. There are many dialects in China however there is only one written language. There government is Communist, the promote atheism although the constitution guarantees freedom of religion. China is the most densely populated county in the world with approximately 1.17 billion people as of 1992. Almost 100 percent of the population are ethnic or Han Chinese. There are strict rules regarding childbirth and each couple is limited to only one child. Appearance in China Conservative suits for men with subtle colors are the norm. Women should avoid high heels and short sleeved blouses. The Chinese frown on women who display too much. Subtle, neutral colors should be worn by both men and women. Casual dress should be conservative as well. Men and women can wear jeans. However, jeans are not acceptable for business meetings. Revealing clothing for women is considered offensive to Chinese businessmen Behavior & Manners in China Do not use large hand movements. The Chinese do not speak with their hands. Your movements may be distracting to your host. Personal contact must be avoided at all cost. It is highly inappropriate for a man...
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...keep going to improve its company. Although VW account for larger proportion market share in China market, the further development is necessary for the company. It can maintain the competitive with others. I found that VW is planning to expand the business in China market. They plan to explore area in South area and West area in China. VW will build the factory in Ningbo. The aim is to increase the influence in China market. VW targets rising the production volume to 300 thousands cars per year. It makes more profits through the mass production. Another future plan is to improve the quality of car. VW spend much money on product development. VW starts developing the new car model in order to enhance the competitive with other car makers and attract new customers. The product should improve as the wants for customers are always changing. Also, they hope to sell the environmental-friendly. They explore the skills for environment. Therefore, VW invest 17.1 billion euro in multi products. That can tackle with customer diversity. Besides, I found that VW is going to explore the renewable fuel, for example wind power and solar power. This plan may solve the problems which increases the fuel price. Last point of the future plan is to rise the sales volume. The goal is to earn 20% of its capital as profit per year. To achieve the goal, VW plans to finance 50% of the vehicles sold in China by 2018. They also desire double or triple sales volume by 2020. The maximize profit is the...
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...Market Cultural Report Rationale for your country of choice In this market cultural report, I will be writing about my personal choice of home country of United States of America making a business to host country of China. By discussing the cultural analysis and business culture in China. And also the difference of the business cultural between China and United States of America. The home country of United State of America is the world third biggest population and fourth biggest area country and consists of 50 states and a federal district. Americans are strongly emphasize personal interest in their work, pay close attention to personal ability usage, and also to increase the values of personal behavior responsibility. Americans are strong...
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...Conducting Business in China China’s three historic schools of thought are Confucianism, Buddhism, and Taoism. These three beliefs make up the foundation for Chinese society. Confucianism is mostly concerned with political ideas and social harmony; Taoism is concerned with the health of the human body; and Buddhism is most concerned with psychology and the nature of the mind. Each of these teachings also emphasis the opposite of its main focus. Confucianism promoted social harmony by teaching about self-cultivation; Taoism talked about health by having harmony with the natural environment; and Buddhism taught about the mind by contrasting it with the material world of things. These philosophies influence business because they are integrated into Chinese business by the way business owners interact and deal with one another. Over 80% of the people in China adhere to one of these three philosophies. In Western countries we purposely separate religious beliefs/affiliations with business dealings but in China and other eastern countries they are a necessity of it. In China, business relationships eventually become social relationships after time. This is a stark contrast to Western business relationships that aim to keep it professional at all times even after time has elapsed. In China the more you share about your persona life including family, hobbies, political views, etc., the closer you are with your business partners. In fact, sometimes the majority of business conversations...
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...Trend in Business in China Wendy He ENG 211D JLU University Lambton College April 5, 2012 2 Trend in Business in China China joined as a formal member country of World Trade Organization (WTO) in 2001 and the way to join it also had many hardships. Chinese government knows that it is very important to join it for Chinese business to have some brand new opportunities. The only problem is joined as the developed country or as a developing country. China is a developing country has not enough ability to afford the responsibility of the developed country. For fear of too many extra duties, Chinese government decided to join as a developing country. The right decision brings a watershed situation for Chinese business. There was a huge financial crisis was sparked by the US subprime crisis in 2008. China also was influenced a lot and many private enterprises were bankrupt. Chinese government has made some useful adjusting policies to deal with these troubles in national business and in the end of 2008 the economic growth rate of China was also had 9%. We can know that the business in China is going to be more and more global and luxuriant. 3 New Business in China All of counties have its own business around the world. This economic interdependence relationship brings both challenges and opportunities to these countries. Because...
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...resource, one of the essential element in business. Everythings need human activities. Therefore, a good human resource management can lead to be success. The five-year plan aims in development and gaining competitive advantage over the world. It requires many of tasks and hence many of labor supplies. This provides an business opportunity for a leading company in Human resource management, the ExcelNet, to get involvement for processing these tasks and expand the business over the China. This report will focus on different targets stated in the five-year plan and analysing each targets, providing advices for how to enter the China market by providing human resource services to the China government. Content 1. Introduction 2. Findings and Discussion 3. Recommendation 4. Conclusion 5. Reference 6. Appendices Introduction: The chosen company is ExcelNet, which is a Human Resource consulting firm. It is a leading company in Human Resource Consulting Services and consist of professionals in different sections, providing recruitment, outsourcing, diversified human resource management solutions mainly in Hong Kong and China. The ExcelNet has provided such service to more than 400 clients, it means that the ExcelNet has many experience and skills in the Human Resource Management. It is large enougth for expansion in the China, a huge market with 1.3 billion populations. The ExcelNet has already setup a department in Mainland China and served government departments, public...
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...Department, Supervisor From: Team C, Research Department Subject: Cultural aspect of China Business Communication in China As requested “Team C” has researched the required information needed to successfully penetrate the market for temporary staffing service opportunities in China businesses per our conversation June 5, 2010. Although the current wide success of Kelly Services Management here in the United States to understand the diversity of cultures in every business and capitalize on it, the opportunity to have the same success in China would require a different operational approach. Potential growth in this new market would greatly increase our reputation here at Kelly Services Management as well as our revenue growth. During our research on how to successfully penetrate the Chinese businesses for staffing services the main focus of the research was to logically acknowledge and understand the cultural aspects of China’s business practices. The purpose for this research was to understand the challenges in working within the Chinese business culture. The following research covers high and low context communication style indicating what is acceptable to the Chinese people. This research covers the meanings associated with the Chinese people commonly used communication style in business practices. This research covers the aspects of the gender roles within the Chinese business culture and gives perspective to their employee structures. This report recognizes the...
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...Business Etiquette in China IMS 3310.006 Professor Zydorek Mahir Modgil Christian Kelly Saabiq Hossain Marlee Kargou Jose Moreno Jeremy Liu Matthew Liu Ever since China joined the World Trade Organization in 2001, the United States’ exports to China have increased more than 500 percent. In addition, according to Business NH Magazine, New Hampshire’s first statewide monthly business publication, the United States Government estimates that by 2020, China’s middle class will grow to about 700 million people (Fierman 14). As a result, China presents unique opportunities for American businesses of all sizes. However, even though China’s business environment might offer great prospects, the challenge for American entrepreneurs is adapting to China’s business culture. In order for one to successfully acclimate to China’s business culture, China’s social values, specific business etiquettes, and common mistakes made by Americans need to be examined. The first step in adapting to China’s business culture is understanding the social values that underlie Chinese social behavior. Chinese social behavior is reflected in 6 concepts: renqing, li, mianzi and lian, and guanxi and bao. According to Allan Chan, the associate dean of the School of Business at Hong Kong Baptist University, renqing can be interpreted as meaning emotions or the way of interpersonal interactions (Chan 48). No matter how renqing is interpreted, the essence of renqing is showing appropriate emotions...
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...Jérôme Bauché INTERNATIONAL MARKETING China’s culture and business practices differ from Europe or even North American. As you start making business in China, having an understanding of Chinese business “etiquette” is important to your success. Knowing and practicing common customs will also help you to avoid embarrassment, and focus on the matters at hand on critical occasions. Appearance One of the most visible changes to the human landscape of China over the past few decades has been the change in dress code. Many men now wear suits and ties and women tend to wear skirts and blouses of a modest cut. It is advisable to have smart business attire with you when visiting. Appearance is important within Chinese business circles. Successful people are expected to look successful. Conservative, simple, unpretentious, modest clothing should be worn and nothing flashy or overly fashionable. Chinese people expect the same with women, which means no heavy make-up and dangling, gaudy jewelry. Behaviors and Manners Most Chinese organizations still have a hierarchical management style. You should not neglect the boss by only talking technical issues to the technician, unless you get permission from the boss. Therefore, it is important to know people’s titles and responsibilities. That’s why you have to use family names and appropriate titles. For the first meeting you have to introduce yourself with your full name and your company’s name as well. The Chinese people dislike...
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...Essay 1 Although the potential market in China is very attractive to FDI, it still have many risks that stopping the FDI decide to invest in China. In order to further attract inward FDI and optimize its structure to meet China’s goals of economic development, there are few measures that the China government should take, including providing more knowledge about the market, providing more networking and connections and enhance the investment environment of China. Taking these measures can effectively attract more inward FDI to invest in China. First of all, many FDI has lack of knowledge about the market which make them afraid of investing in China. Therefore I suggest that the China government can provide more information about the market such as the history of investment of the target market, the development of the target market and the structure of the target market. This can help FDI gaining more knowledge about the target market and thus can lower the risk of failure investment. Moreover, being insensitive to Chinese culture, social norms is also one of the major factor that lead to failure investment for FDI. I suggest that the China government can hold some forums or talks introducing the culture of China and the difference between western and Chinese culture. Secondly, lacking of networking and connections in China will also stop the FDI invest in China. Since most of the FDI has lack of the knowledge about the market, they need to find networking or connections...
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...| | |[pic] | |United Business Institutes | |Full Name | | |Student ID | | |Program |BBM | |Module Code |MGT 402 | |Module Name |International Business Management | | | | |Submission Date | | |Total Pages (Including Cover Page) |19 | | | | |Face-to-Face...
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...Quentin VATELOT April, 15 2013 Asian Economics The wine business in China. For about 20 years, China has shown a particular interest to wine. China has been making various forms of wine for some 2,000 years, although not in a style resembling western wines until the 20th century. China claims over 160,000 acres of vineyards nationwide, but many are located in remote areas, such as Xinjiang, where Silk Road traders brought seeds centuries ago. Despite this history, the wine industry in China has only recently begun to develop into a significant market. Twenty years ago Chinese consumers tended to drink beer and grain spirits, but in 1987 the Chinese Government began to focus on reducing alcohol related illnesses and encouraged consumers to drink less grain-based spirits, and more beer and grape wine. In the 1990, wines in China were really bad quality, and small quantity. For 20 years, they have imported European type of grapes and techniques that increase the production and the wine quality. This interest to wine is mainly due to the emergence of a high class in China who has been more and more interested in European luxury goods like wine and other spirits like Cognac which China is already the biggest market. Wines have gradually attained consumer acceptance, not least due to Chinese Premier Li Peng, who in 1996 decreed that state banquets should be enjoyed with wine instead of spirits. The influence of western eating and drinking habits has been key in this...
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...China's market reforms and accession to the WTO has led to its economy growing rapidly, to the point where it is now the fourth largest on earth, and is expected to be in the top two within the next decade (Business Monitor International, 2006). As a result, China's SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previous practices are no longer relevant. This piece aims to examine the effect of these changes on the strategies of Chinese SMEs by first examining the role of the SME in the economy, then analysing the strengths and weaknesses of the Chinese SMEs, and the opportunities and threats that have arisen from China's WTO membership. The piece will then examine Chinese SMEs from a strategic perspective, and the impact the the WTO membership has had on said strategies. Finally, the piece will give strategic recommendations for Chinese SMEs that wish to take advantage of the opportunities that WTO membership offers, and also for those SMEs that wish to avoid the challenges it poses. The Role of SMEs in both the International Perspective and the Chinese Perspective Academics have long realised that small and medium enterprises grow to become the major corporations and businesses of the future (Davis et al., 1985). As a result of this view, greater attention has been given to the role of small and medium sized enterprises (SMEs) in contributing...
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