--%>

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 : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

  • Q : Good international monetary system

    Explain criteria for the ‘good’ international monetary system.

  • Q : Claim depreciation When an asset is

    When an asset is purchased and the similar is not employed for the financial year, must the company charge the depreciation and the reason for the similar?

  • Q : Pricing spill-over effect Discuss

    Discuss pricing spill-over effect.

  • Q : Dimensions of Creativity What are the

    What are the dimensions of creativity in the Creative Field ?  

  • Q : Universities Essay topics I have a

    I have a problem with the following Essay topics illustrated below: Topic A:What is the ultimate goal of yoga practice according to Patanjali, and how do

  • Q : What is Corporate Social Responsibility

    Corporate Social Responsibility directly states that every company is responsible towards the society and the environment. So this is a duty of every company to create eco-friendly new products. In the current scenario when the fuel prices are increas

  • Q : Explain the term Company Explain the

    Explain the term Company in reference to Accounting?

  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

  • Q : Explain Cost of goods Explain Cost of

    Explain Cost of goods and how they are used in estimating gross profit and net profit of the business?