--%>

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 : Analysis of cash flow statement What do

    What do you mean by the term Analysis of cash flow statement?

  • Q : Difference between consensual crimes

    Explain the difference between consensual crimes and conflict crimes, and give three examples of each.

  • Q : Assessing risk in the workplace

    Describe the primary steps in assessing risk in the workplace with respect to Health and safety, identify and discuss what actions should be taken to manage or wipe out the risks posed?

  • Q : Computing overall balance and its

    Discuss how to compute overall balance and explain some of its significance.

  • Q : Fundamenetal Issues on Management

    1.  Somerset Ltd manufactures components for the motor industry. In one of its workshops it has three workers, Joe, Jack and Jonny, who at any one time work on batches of the same component. The standard time allowed to produce one unit is one hour. The workers rate of pay is

  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

  • Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

  • Q : Segmented capital market Assume that

    Assume that your firm is operating in the segmented capital market. State some of the actions that you would recommend to diminish the negative effects?

  • Q : Importance of international financial

    Explain the importance in studying the international financial management?

  • Q : Type of bond instrument You are an

    You are an investment banker who is advising a Euro bank about the new international bond offer it is considering.  Proceeds are to be used to fund Eurodollar loans to the bank clients.  Specify the type of bond instrument you would recommend that bank shoul