--%>

Whether MNC open their manufactoring units in china

For most global companies, China symbolizes a very attractive market in terms of size and growth-rate. Yet, it ranks lower in words of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite such risks, most popular and reputable organizations have established manufacturing operations in the China. This is hugely since the Chinese government builds sales in China contingent on a company's willingness to position production there. The government wish for Chinese companies to learn modern management skills from another international companies and gettechnology. A few observers believe that whenever Western companies agree to these conditions, they are bargaining away significant industry knowledge in exchange for he short-term sales. Answer the given questions based on the situation explained.

Should companies comply with China's conditions?
Should they risk losing sales by refusing to transfer technology?

Summary:

This assignment in management is about the topic, “whether multinational companies should open their manufacturing or production units in China”. This question has been a debate in international business community because of the fact that despite the lack of political and economic freedom in the country, many companies want to set up their production houses in China. The concept is discussed in detail in the solution.

E

Expert

Verified

Should companies comply with China’s terms?

As the society advances to the global society as well as companies started transitioning themselves in the multinational as well as global organizations, question about that the rules as well as regulations company must follow has been probably precipitating. I feel that such has been a case with the China.  
 
I have believes that before answering question about the foreign nation compliance, one must examine reasons why the organization entered in such foreign market. Main objective has been particularly the profits and the secondary might be the expansion, the initiative towards becoming the globally renowned brand as well as gaining the international market share.

Should they risk losing sales by refusing to transfer technology?

Companies such as the Microsoft, the Google as well as Yahoo prevail as they have made the appropriate technology that permits them towards catering to the requirement, which has been simply met through them respectively. When they had been towards disclosing the inside information, then using the patents as well as the copyrights might no longer be required.

This would be such as the open source however for the business processes. I may not agree with the transfer of technology to the other companies, let only the foreign nations. I saw no advantages to do this apart from obvious important sales.

When I had been the Chief Executive Officer, I could have been willing towards losing the sales over risking loss of my technology as well as helping the foreign nation breed that are my future competitors.

   Related Questions in Financial Accounting

  • Q : Meaning of Electronic Fund Transfer

    What is the meaning of Electronic Fund Transfer. Briefly describe it.

  • Q : International foreign and domestic trade

    Explain some of the reasons why international foreign trade is difficult and risky from the perspective of exporter than is domestic trade.

  • Q : Types of groups Identify and describe 4

    Identify and describe 4 types of groups; provide examples.

  • Q : Pre-requisites to apply Budgetary

    Write down the pre-requisites to apply Budgetary Control?

  • Q : Separately-priced-items strategy

    Problem 1.  The manager of Joe's Menswear has noticed that over the past two holiday seasons their usual sales strategy of marking down prices has not been yielding the boost in revenues that it once did.  JM sell men's suits, dress shirts,

  • Q : Objective Questions on Sociology 1)

    1) Which large European city declined significantly in population over the past century? A) Paris B) London C) Rome D) Madrid 2) The industrial city was characterized b A) decentralization B) corporate growt

  • Q : Define status and role Define status

    Define status and role, explain the difference between the two, provide illustrations.

  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : Analyse the ramifications for

    HOMEWORK ASSIGNMENT FOR ADMINISTRATIVE LAW"The problem in today's complex legal environment is that the law is not able to be divided conveniently into segments. Any apparently discrete sect

  • Q : Equilibrium of balance of payments

    State mechanism that restores equilibrium of balance of payments in case it gets disturbed below the gold standard.