--%>
Assignment Help - homework help

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 : Restrictions of standard costing Write

    Write down the restrictions of standard costing?

    		•
  • Q : Define Margin Improvement Margin

    Margin Improvement: Margins in the business remained beneath pressure, even previous to the economic downturn for the industry as an entire, returns on capital have continued under the cost of capital. Previous to the falls in the second half of the y

    		•
  • Q : Prepare journal entry to record

    On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as follows: Asset Fair Value Land $100,000 Building 600,000 Equipment 250

    		•
  • Q : Exposure is the regression coefficient

    Discuss the given statement: “Exposure is the regression coefficient”.

    		•
  • Q : Define the term Kiting Define the term

    Define the term Kiting in Accounting stream?

    		•
  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil

    		•
  • Q : Special drawing rights Discuss how the

    Discuss how the special drawing rights (SDR) are formed. And also, explain the circumstances due to which SDR was created.

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

    		•
  • Q : Conglomerate expansion Evaluate the

    Evaluate the given statement: “Firm may decrease its currency exposure by diversifying across the different business lines”.

    		•