...FOREIGN LAW FIRM MARKETING STRATEGY IN CHINA INTRODUCITON As China’s rapid economic growth brings a rising amount of business and investment from the rest of the world, law firms feel increasingly under pressure to open an office in Mainland China, Hong Kong or other countries in the region. The past few years have seen a wave of office openings in China, as firms look to establish a Chinese presence or to increase their existing Asian network. However, regulatory constraints set up by the Chinese government and cultural differences can be the major obstacles when starting a legal practice in China. This paper intends to present an overview on the primary concerns and considerations regarding the Chinese market entry of foreign law firms. It first provides an introduction on the Chinese legal market environment and statutory restrictions on legal business. In Part II, it illustrates and compares different entity/association options foreign firms can consider when entering the market. Finally, in Part III of the paper, an analysis on client relationship management and cultural difference impacts is demonstrated to point out the unique marketing strategies in China. I. THE CHINESE LEGAL MARKET ENVIRONMENT i. Overview Today the Chinese government is speeding up economic development by reforming the banking system, encouraging foreign investment, and through the privatization of state-owned enterprises. Since 1978, China’s open-door policy has attracted...
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...collaborated company. There are different modes through which a company can enter China; the main ones have been briefed below: Representative Office: The simplest way for a company to establish in China is through opening a representative office in China. The representative office acts as a bridge between the foreign company and its business partners in China. It gives the company a platform to conduct market research, make business contacts, manage product promotion and manage other activities for the parent company like making travelling arrangements for its company representatives. Compensation Trade: Manufacturing companies who want to outsource their production usually have a compensation trade agreement with firms in China. Usually a barter system is followed in which the parent company gives machinery to the Chinese and the Chinese produce the product for the company. This type of agreement needs compliance with the Foreign Trade Authority. Due to the rising interest of the Chinese government in attracting the foreign companies towards China, there is an array of ways a foreign company can collaborate with a Chinese company to form a joint-venture. Most widely used joint-venture modes are : Cooperative Joint Venture: Under the CJV type of collaboration both the companies enjoy convenience and the flexibility of making their own terms and regulations. This type of a collaborated firm does not need to be a legal entity. The profit and...
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...Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo PART OUTLINE Chapter 1 Assessing the Environment—Political, Economic, Legal, Technological Chapter 2 Managing Interdependence: Social Responsibility and Ethics Assessing the Environment Political, Economic, Legal, Technological Outline Opening Profile: Economic Crisis Spreads Through Financial Globalization The Global Business Environment Globalization Globality and Emerging Markets Effects of Institutions on Global Trade Effects of Globalization on Corporations Regional Trading Blocs The European Union (EU) Asia Comparative Management in Focus: China's Economy Keeps on Chugging. The Americas Other Regions in the World The Russian Federation The Middle East Developing Economies The African Union The Globalization of Human Capital The Global Manager's Role The Political and Economic Environment Political Risk Political Risk Assessment Managing Political Risk Managing Terrorism Risk Economic Risk The Legal Environment Contract Law Other Regulatory Issues The Technological Environment Global E-Business Conclusion Summary of Key Points Discussion Questions Application Exercises Experiential Exercise Internet Resources Case Study: Indian BPOs Waking Up to the Philippines Opportunity? Management Focus: Intel Brings Changes to Vietnam's Economy and Culture Information Technology OBJECTIVES: 1. To understand the global...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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...Reform and Opening in China: “Sequencing” or “Parallel Partial Changing” FAN Gang National Economic Research Institute China Reform Foundation Beijing, China November, 1999 Content I. Introduction: Lessons of Asia Financial Crisis for Reform and Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent...
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... EC280: INTERNATIONAL BUSINESS ANALYSIS Name: Lee Wen-I Words:1963 Table of Contents Introduction 3 1 How is China becoming powerful? 4 2 Global overcapacity and China 5 3. Challenges toward China 6 4. Reaction of China 8 References 10 1. Globalisation in China Since 1990s, globalizing is shown everywhere in the world. The commodities, cosmetics, clothes, or even designer goods are now made in any country that you might think of. In the widely cited report, Goldman Sachs argued that the economic potential of Brazil, Russia, India and China is that they may become among the four most dominant economies by the year 2050, with China surpassing the United States in output by 2035. Globalization has become one of the important issues in this global economics. However, when it comes to representing the success of globalization, China often came out. China influencing more and more on the inflation, Yyield to Maturity (YTM), wage standardization, capital flows, migration and even building city quotations on the markets. China certainly plays an important role for the future globalization development. From the financial magazines, it shows that although China is not the only country that developing extremely fast, it is the most important one. 1.1 GDP and growth in China In 2000, the GDP growth rate in China is almost two times than the combination of Brazil, Russia and India. Luthans states that: ‘China’s GDP has remained strong, maintaining...
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...degree of investment in that country. In the case of China, it has long been considered as one of the most important investment heavens thanks to its economic reform, which helped lured in billions of dollars in investment. As of today, China is the host of more than 190 countries and about 450 of the top 500 companies In the world. The major reason for such attraction can be explained by the several advantages that its new economic reform offers to investors (Bose, 2012). The country availability in human resources is certainly its most attractive attributes with nearly 1.2 billions inhabitants, which makes it the host of the largest market in the world where its population’s purchasing power has exponentially increased throughout the years, but still holds one of the lowest cost of labour compared to Europe or the US. China also has many energy resources such as coal, in which domain it became the world’s largest producer. Its coal production enabled the country to supply sufficiently its electric power needs, and eradicate any worries of electricity shortage (Bose, 2012). In term of investment security, China has made it one of its main concern. The country has implemented many laws and regulations such as the Equity Joint-venture Law and Contract Law. The Joint Venture law for example has been modified to prohibit nationalization, which emphasizes on investment protection, and make investors safe in China. The contract law promotes investors legal rights to find their own...
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...DigitalCommons@EMU. For more information, please contact libir@emich.edu. U.S. Business and Global Barriers to Entry Abstract An exploratory view of barriers to entry in countries of significance to U.S. companies, this thesis provides a comprehensive overview of prevalent business strategies of U.S. trading partners as well as a forecast of their international business policies. Diverse macro-environmental variables, such as economy, culture, and regulations result in varying barriers to entry for U.S. based firms to conduct business in U.S trading partners’ countries. This thesis will determine how these macro-environmental factors foster or stunt growth and strategies governments employ to attract businesses. Degree Type Open Access Senior Honors Thesis Department Marketing First Advisor Harash Sachdev Keywords International trade, Foreign trade regulation, Investments, Foreign China, Investments, Foreign India, Investments, Foreign Hungary, United States Foreign economic relations Subject Categories International Business This open access senior honors thesis is available at DigitalCommons@EMU: http://commons.emich.edu/honors/167 U.S. Business and Global Barriers to Entry Eastern Michigan University Honors College Senior Thesis By Caitlin Long Sponsored by...
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...from a short-term perspective, it is quite clear that Chinese FDI in Africa is more beneficial for China than Africa. However, as Africa slowly familiarizes itself to the increased participation of China in its economy, the long-term potential of Chinese FDI for Africa is much more apparent. The benefits are significant, and are more likely to be attained when Africa has fully adapted to China’s involvement in its economy. First of all, Chinese FDI is considered an essential source of capital formation, especially for the less developed economies of the African countries. Large capital inflows from China would not only stimulate Africa’s economy, but also increase its wealth by promoting trade as well as opening and expanding market opportunities. China, in particular, is reputed to save its income to a greater extent than other countries[1], implying that a large amount of this surplus of income is being spent on its investments in Africa to further strengthen Africa’s economy. In fact, Africa’s economy grew by 5.8% in 2007, and this dramatic increase is to be partially attributed to Chinese investment[2]. Moreover, Chinese knowledge and expertise are expected to be passed on to the local African firms in the form of transfer of technologies[3]. Further analysis reveals that Chinese technology may even be the most appropriate to be transferred to Africa. Indeed, even though China does not possess the most advanced technology, its low-cost and straightforward techniques are the...
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...from more socialist to democratic systems, reflecting related trends discussed in Chapter 1 toward| | |more market-oriented economic systems. | |2. |PRESENT an overview of the legal and regulatory environment in which MNCs operate worldwide, and highlight differences in | | |approach to different legal and regulatory issues in different jurisdictions. | | | | | |The current legal and regulatory environment is both complex and confusing. There are many different laws and regulations | | |to which MNCs doing...
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... 2. Detail how firms recruit and select managers for international assignments. 3. Explain how international businesses train and develop expatriate managers. 4. Discuss how international firms conduct performance appraisals and determine compensation for their expatriate managers. 5. Analyze retention and turnover issues in international business. 6. Explain basic human resource issues involving nonmanagerial employees. Describe labor relations in international business. LECTURE OUTLINE OPENING CASE: An Emerging Voice for Workers The opening case discusses the changing nature of the Chinese workforce, as workers become more aware of their value to employers. Key Points 1. China is becoming the largest manufacturing center in the world, providing a large number of workers who are willing to work long hours for low pay. 2. Although this is changing, as the workers become more aware of their value to the employer. 3. Wages and working conditions have been improving, which in turn leads to more spending on the part of workers, serving as an economic stimulus for China. 4. The All China Federation of Trade Unions (ACFTU) is the only legal labor union in the country, which hopefully gives the workers something through which they can air their grievances. 5. For the first time workers in china are going on strike...
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...Construction Market and Construction Firms in China: Strengths, Weaknesses and Development Trajectory Vishnu Sridharan Working Paper #0033 September 24, 2007 | Collaboratory for Research on Global Projects The Collaboratory for Research on Global Projects at Stanford University is a multidisciplinary center that supports research, education and industry outreach to improve the sustainability of large infrastructure investment projects that involve participants from multiple institutional backgrounds. Its studies have examined public-private partnerships, infrastructure investment funds, stakeholder mapping and engagement strategies, comparative forms of project governance, and social, political, and institutional risk management. The Collaboratory, established in September 2002, also supports a global network of scholars and practitioners—based on five continents—with expertise in a broad range of academic disciplines and in the power, transportation, water, telecommunications and natural resource sectors. Collaboratory for Research on Global Projects Yang & Yamazaki Energy & Environment (Y2E2) Bldg 473 Via Ortega, Suite 242 Stanford, CA 94305-4020 http://crgp.stanford.edu 2 About the Author Vishnu Sridharan is a third year student at Stanford Law School. After graduating from Magna Cum Laude from Columbia College in 2004, he spent two years as a Peace Corps Volunteer in El Salvador, focusing his efforts on increasing municipal transparency and facilitating...
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...– With reference to your own research and the item above, to what extent do you think that targeting emerging markets such as China is the best way for businesses to achieve profit growth? An emerging market is a market which is experiencing rapid growth and becoming highly profitable which becomes open to many businesses to enter. Achieving profit in China can be achieved through many ways by increasing revenue through changing the way the business operates or to operate as a joint venture. By doing this businesses that operate in China are able to benefit from their profit growth by becoming more well-known. There are exceptions however where business have become successful in achieving profit growth because of operating either unethically or non-environmentally friendly. There are also arguments and examples of business that have operated in China, who have not become successful from having targeted an emerging market because of vast amount of competition that is present. Targeting emerging markets in China has shown to be one of the best ways to achieve profit growth for businesses which sell food and drink, such as Yum Food Brands. China, having accounted for almost 40% of its entire company, was able to become a huge success by having KFC, its biggest fast food chain, reinvent its menus so that there was a wide choice for the 1.3b Chinese population who were are very experimental with western foods and brands. Through having a sheer size of population who like to try...
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...Executive Summary Myanmar, the last frontier of Asia. With abundance of untapped natural resources and potential growth is the key to her future success. The recent signed “Telecommunication Law” makes Myanmar the last few untouched telecommunication markets in the world. Although sadden with poor infrastructure, the country will be abled to leverage on the “Telecommunication Law” to bring potential growth to other sectors. Although the country is seem as corrupted and with Corruption Perceptions Index (CPI) at rank 156th out of 175 countries, President Thein Sein has made many political reforms to improve the governing situation. Overseas investors are starting to gain confidence and build their businesses in Myanmar. Myanmars main exporting commodities includes natural gas, wood products, pulses, beans, fish, pulses rice, gems, jade and clothings. And its mainly being exported to Thailand,India, China and Japan . The opening of Japan's Bank of Tokyo-Mitsubishi UFJ (BTMU) is a new milestone achieved as it is the first foreign bank to operate in Myanmar for decades. In this report, we will analyse Myanmar’s recent developments and its new found global and evalute how Myanmar should prioritise over the next 5 years. Table of content 1 Introduction 5 2 Myanmar’s recent developments and its new found global status 6 3 Analysis of Myanmar 7 a. Political 7 i. Politics and issues 7 ii. Corruption 7 b...
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...xM&A Law Firm LEGAL GUIDE TO DOING BUSINESS IN CHINA CONTENT I. OVERVIEW ...................................1 II. FORMING A COMPANY IN CHINA ................................................................2 III. MERGERS AND ACQUISITIONS ................................................................8 IV. TAXATION ...................................12 2011.05 Address: 13th/14th F, Huamin Empire Plaza 726 West Yan An Road, 200050 Shanghai,China Tel: (8621) 52370950 I. OVERVIEW This guide provides foreign investors an overview of the laws and regulations governing business in mainland China. After 30 years law making and reform, in 2010s, China has already promulgated a body of written statutes governing commercial affairs, including company management, employment, making contract etc. There exists an even larger body of implementing regulations and circulars issued by governmental authorities. The law in China often evolves in a piecemeal fashion, with certain regulations applicable experimentally only in certain geographic regions or with the issuance of temporary “interim” regulations that nevertheless have the force of law. The written statutes and regulations are often pitched at a relatively high level of generality, leaving significant discretion to implementing officials. Questions of law are resolved generally directly by the administrative agencies in charge of enforcing those laws, rather than by the courts. V. EMPLOYMENT AND LABOR LAW ......................
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