...Ana María Hoyos Business Law in China and India Which is more appealing to Latin America? The economy of the United States has been slowing down during the past years, leaving Latin American economies with no alternative but to look into further horizons. Both China and India have been growing and flourishing into attractive alternatives for Latin American businesses. These two fast-growing developing economies represent a great opportunity for Latin American countries especially because both India and China have showed their interest in doing business with Latin America. Additionally, the recent boom of Latin American leftist governments that are not fond of the United States has minimized the gap between the western south and these two Easter giants, increasing the need for joint business ventures and trading partnerships that contribute to the growth of China, India and Latin America. In order to evaluate the relation of Latin American countries with China and India, it is important to analyze the legal systems and regulatory business environments of the Chinese and Indian governments. By developing a concise comparison between China and India, this paper will eventually evaluate which country has more to offer to Latin American economies. Such comparison will be based upon aspects such as legal backgrounds and traditions, basic business regulations, trade laws and others, to finally conclude what sort of government is more appealing to Latin American economies. ...
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...Introduction This report shall focus on China as the world’s largest emerging market, examining how managerial practice in China differs from Western practice. This report shall attempt to offer guidance to managers operating in China, taking into consideration issues outside their normal experience, for example government regulation and cultural differences. According to Justin Lin, The World Bank's chief economist, China, which became the world's second largest economy in 2010, may become the world's largest economy in 2030, overtaking the United States, if current trends continue. Taking this into consideration we can see that not only is China the world’s main production market but also the world’s centre for consumption. It is crucial that western businesses and managers understand how to do business in China and the issues they may face in management practice in an international and cross-cultural context. Political and regulatory considerations for doing business in China, Anti-gifting regulations in China The giving of gifts is an essential part of Chinese culture (Yang 1988). Personal and corporate gifts accounted for approximately 25% of luxury goods sales in China in 2012. Bain et al (2013) This sale percentage is now at risk as the Chinese government attempts to combat both the act of corruption and a negative view among the population of the behaviour of politicians. As part of the anti-corruption campaign, in July 2012, the State Council passed regulations...
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...Business Comm. Business in other Countries When working in the global commercial environment, you need to consider the cultural mandates of each country in which you do business, and you will also need to ensure you obey both local and international laws. Knowledge of the impact of cultural differences is one of the keys to international business success. Improving levels of cultural awareness can help companies build international competencies and enable individuals to become more globally sensitive to the social norms of different countries. Cultures vary widely from country to country, and what might seem polite in the United States can be rude and unprofessional in another location. In some countries, for example, in China you'll be expected to dress very formally and be highly direct. In others, however, small talk, getting to know your client and frequent informal business meetings are the norm. Doing business always involves meeting and greeting people. In China, meetings start with the shaking of hands and a slight nod of the head. Usually clients aren’t overly vigorous when shaking hands, the Chinese may interpret this as aggressive. The Chinese are not keen on physical contact, the only circumstance in which it may take place is when a host is guiding a guest. Even then contact will only be made by holding a cuff or sleeve. Also, it is not wise to slap, pat, or put your arm around someone's shoulders. The giving of gifts does not carry any negative connotations...
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...what makes up the population of every country in the world. It is one of the many things that makes us all different. When doing business with other countries it is a real gullible state of mind to think that all people in all places all have the same behaviors and ways of doing things. People should not be confused or taken for granted because they wear the same designer jeans, name brand shoes, or even speak the same language as they do. Same scenario when doing business, even more so if that business is to be done in another country or with someone with a different cultural background. Things such as higher levels of sensitivity, being more detail oriented or simple differences like their patterns of behavior can make a huge difference in some other culture (Drew, 2013). If you want to succeed in the cross-cultural business world of negotiations you must completely understand others, and using that knowledge to your advantage to recognize the desires of all parties involved; and then develop a situation that becomes a win-win setting for everyone involved. It is wise to keep in mind, that when doing cross-cultural business, the methods or approaches of the domestic could be different and may not apply if they are not culturally accepted by the other party (Drew, 2013). Some of the most common things you should know before negotiating business with another culture are as follows:...
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...result, the business relationship between Australia and China has been consolidated during these trading years. China is the second largest export market after Japan and third largest trading partner for Australia. Alternatively Australia is the ninth largest trading partner for China, thus the bilateral trade volume is increased annually in the growth rate of 30 percent (Moens.G,2007,p.56). Rio Tinto is the one, powerful multinational mining and metal company which is operated business to greatly import its porducts to China as the 19 percentage of company’s revenue is acquired from China market in 2008 (Chen, S. 2010). After Rio was declined an offer of $US20 billion from the state owned Chinalco, the arrest and sentence of Stern Hu and his colleagues in 2009 was occured for allegations of bribery about $US14 million and stealing business secrets from state-run steel company. Consequently the China Iron and Steel Association reflected by the action of stop buying iron ore for the next two months from Brazil’s Vale, BHP Billiton and Rio Tinto (Mascitelli&Chung, 2011). As a result the trade relationship between Australian and China is collapsed in some way that Foreign Minister Stephen Smith said transparency and openness could have facilitated Australia and the international business community in understanding and dealing with the matter (Sainsbury,M.2010). The case has raised the cold war tension between the essential economic relationship between Australia and China that the...
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...summary of the “Make or Break for China” by Fareed Zakaria in the Time Magazine January,2014. In the article the Fareed begins by addressing 2014 is the year of the horse in China and list down the country’ problem before it becomes the world’s largest economy . A big part of Fareed’s focus in this article is about China’s challenges likes debt, pollution and corruption. In this article showed how China’s financial crisis and the global economy slowdown based on it’s economic imbalances . The basic economy’s problem is that for almost a decade, China's economic growth has been fueled by cheap credit and government spending--a classic developing-nation problem .The country’s total debt level was estimated at 215% of GDP in 2013.Besides financial problem, China also have serious challenges in environment. Air and water pollution has become a major public health issue in the country.The last challenges in 2014 is the corruption’s problem ,it seriously increasing among the Communist Party. According to this article, China’s president has launched an anticorruption campaign for this unethical problem . In closing, Fareed Zakaria says that ,he not ready to bet against China if China’s leader did not manage this transition well.If China’s leaders manage this transition well.the country will emerge stronger and more stable and become the largest economy in the world. INTRODUCTION International business is much more complicated than domestic business because countries differ in many...
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...Recommendation 8 5.0 Reference List: 9 6.0 Appendices 10 1.0 Introduction: This report is concentrate on talking about the dangers and opportunities of New Zealand animal husbandry industry that try to start international operations in China. China is one of the world's oldest continuous civilizations, and has most complex cultures. China leads the world in swine production, the total number of hogs reaching about 454.4 million at the beginning of 2001 (55% of the world's total), as compared with 89.8 million in 1952. The number of sheep expanded from 36.9 million in 1952 to nearly 133.2 million in 2001. Pig raising, often pursued as a private sideline by peasants, is the fastest-growing sector of the livestock industry, and hogs and pork products are becoming valuable export earners. In 2001, China produced 65.3 million tons of meat, ranking first in the world with 27% of the total. Some 12.8 million tons consisted of poultry. Pork production in 2001 amounted to 42.9 million tons (first in the world), equivalent to 40% of global production. (China-Animal husbandry 2010) 2.0 Discussion 2.1 Globalization Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture,...
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...Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why? The political regime of a country attempts to protect the interests of its citizens through social, environmental and economic goals. These objectives often have significant, yet varying impacts on organisations operating within the nation; depending upon the nature of their business and the political ideologies of the country in question. As a result, international companies looking to expand their operations overseas must carefully consider the nature of the political regime and the resultant factors which will impact their ability to conduct business and generate profits. The Peoples Republic of China and India are two vast nations which over the past several decades have undergone considerable development and economic growth and therefore represent substantial opportunity for international businesses to expand or outsource their operations. Despite their geographic proximity, China and India have very different political philosophies and regimes which have resulted in variations in their regulatory framework, taxation policies, stock exchanges, intellectual property rights and the consequential foreign direct investment and growth. The Peoples Republic of China operates through a single party political system led by the Communist Party of China. Traditionally, Marxist ideologies dominated the nation’s economic regulation, however reform in 1978...
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...International Journal of Business and Management December, 2008 An Analysis of Business Challenges Faced by Foreign Multinationals Operating the Chinese Market Jianlian Wu International Management, University of Nottingham Ningbo 315100, China E-Mail: zlixcwj1@nottingham.edu.cn, qqnamei@163.com Abstract China’s rapid economic growth has presented numerous opportunities and challenges for foreign firms there. Many large corporations have established a China centre to coordinate and control their operations in the country. As firms have increased their presence in China, their concerns are increasingly focused on implementing successful management practices and strategies. This article describes the challenges and difficulties that multinational companies faced in Chinese market. It analyses roles played by the human resource function in these China, culture differences, social environment and other factors. Keywords: Challenge, Multinationals, Chinese market 1. Introduction Over the last few decades, the process of globalization has created unprecedented opportunities for global business investment and trade. Many multinational companies are attempting to expand their business international by many entry strategies such as joint venture and subsidiary. While China, with over 1.3 billion population and 9.6 million square kilometers (China Popin, 2008) has become a valuable land for foreign multinational companies. They try to enter the Chinese market by using many...
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...International Journal of Business and Management December, 2008 An Analysis of Business Challenges Faced by Foreign Multinationals Operating the Chinese Market Jianlian Wu International Management, University of Nottingham Ningbo 315100, China E-Mail: zlixcwj1@nottingham.edu.cn, qqnamei@163.com Abstract China’s rapid economic growth has presented numerous opportunities and challenges for foreign firms there. Many large corporations have established a China centre to coordinate and control their operations in the country. As firms have increased their presence in China, their concerns are increasingly focused on implementing successful management practices and strategies. This article describes the challenges and difficulties that multinational companies faced in Chinese market. It analyses roles played by the human resource function in these China, culture differences, social environment and other factors. Keywords: Challenge, Multinationals, Chinese market 1. Introduction Over the last few decades, the process of globalization has created unprecedented opportunities for global business investment and trade. Many multinational companies are attempting to expand their business international by many entry strategies such as joint venture and subsidiary. While China, with over 1.3 billion population and 9.6 million square kilometers (China Popin, 2008) has become a valuable land for foreign multinational companies. They try to enter the Chinese market by using many...
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...Introduction Emerging markets by definition are developing economies that exhibit sustained economic reform and growth, no doubt China has experienced both. In fact China, with more than 1.3 billion people, is the world’s most populous country and has a rapidly growing economy (Doh & Luthans, 2012). One would think that their dual status as it pertains to both communism and capitalism would be a deterrent to doing business in the People’s Republic of China, and in many cases cease long term global integration into China’s market, this has not occurred and probably won’t because the results of expanding in the Chinese market out weighs the challenges that are met. Continued forecast and optimistic projections still make doing business in China favorable and the most viable option to remain competitive in today’s global economy. The key to success or failure when entering a foreign market consist of careful examination, and identification of all potential problems regarding an organization’s culture, economic environment, political risks and social climate. Additionally, a comprehensive strategy has to be in place to overcome objections and make adjustments. Understanding the differences from a political, economical, social and cultural aspect as well as the ability to respond to different national standards and regulations are key factors. The Chinese Culture Culture is defined as the sum total of beliefs, rules, techniques, institutions, and artifices that characterize...
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...Ethics Case Study - Student Gets a Better Job Offer Step 1: Recognize: Define the ethical problem from all perspectives. • The student did not tell company B after accepting to work there that he already accepted to work company A. • The student did not notify career services office about any of this. Step 2: Clarify the Facts • The student agreed to work for company A at the beginning, because he did not hear from company B (yet). • The student later was accepted to work for company B; since this was his first choice he accepted that offer as well. • The student went back on his words and declined company A after already accepting it. • Career services office only found out about this after the student had reneged upon the job offer. Step 3: Create Alternatives • The student will not be permitted to work in company A or B. • The student will go work for company A, as he approved that offer first. • The student will work for company B, but will never be allowed to use career services again. • The student will be kicked out of school. Step 4: Evaluate Alternatives (short/long term effects) • Short term: student will not have a job Long term: the student might not be able to find another job that year but will learn an important lesson for life. • Short term: student will work for company A and be disappointed since he is not fulfilling his true ability. Long term: student will realize that what he did was the ethically correct choice. • Short term:...
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...are many things that factor into making such an enormous decision a successful one. Some of these factors include, the strategies to which the business will use, what modes of entry they will take, and what are possible threats and opportunities that may arise. Choosing the right strategy to enter into a new market is key in determining the success of the company now and in the future. I. Introduction “Walmart Stores, Inc. was founded by American retail legend Mr. Sam Walton in Arkansas in 1962. Over nearly 50 years of development, the company has served customers and is now the world’s largest private employer and retailer, on the top of the Fortune 500 list. Walmart is among the most recognized global brands.” (Walmart China Factsheet) II. Global Expansion Lately, many large companies within the retail division who seek to increase their profits and hold a greater market share have decided to expand their companies globally. Global expansion has grown to the point where its not only attacking large companies, but has increased the efforts of those small-scale companies, those who are foreign to expanding internationally, and even those who have already ventured into international markets. There have been many up and coming retailers who have been successful with moving their business into the international sector. These companies have played an intricate part in opening the avenues for more retailers. There have also been, however, some downfalls...
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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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...which will mainly provide leather and labor in this joint venture because labor cost is low in Bangladesh. The whole manufacturing process will take place in Bangladesh. On the other hand, India and China will mainly provide technology, idea, R&D and special equipment (if required). We have decided to go for joint venture, rather than exporting because, joint venture provides companies with the opportunity to gain new capacity and expertise. It will allow us to enter new geographic markets, that is, India or China and gain new technological knowledge access to greater resources, including technology and sharing of risks with them. China and India is not an easy market to enter, as from geographic point of view, they are vast and also they possess a total different culture. Again, it will be difficult for us to monitor and sustain. So, by joint venture, we will be able to penetrate their market and also to their culture easily and quickly through them as they already have enough knowledge about their market. EXTERNAL ANALYSIS – PESTLE ANALYSIS THE PESTEL ANALYSIS OF INDIA Political: (Stable) After researching the taxation and government policies, it can be said that India is politically stable and it will not upset doing business or growth of the company. India has an open system for the foreign entry. But sometimes the country faces ups & downs in the political sector. Tax rate in India is 30% for Indian companies and 40%...
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