--%>

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 : Article on Valuation of assets Write an

    Write an article on Valuation of assets serves for both buyers and sellers of goods and services.

  • 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 : Characteristics of Composite currency

    State the characteristics of the Composite currency bonds market instrument.

  • Q : Wind turbine I have started to design a

    I have started to design a wind turbine but I am stuck now. I would like you to have a look to my design and tell me what do I have to do.

  • Q : Historical Cost of Fixed Assets What

    What are the Historical Cost of Fixed Assets?

  • Q : Maintaining multiple manufacturing

    Write down disadvantages and advantages of maintaining the multiple manufacturing sites as the hedge against exchange rate exposure.

  • 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 : Segmented and Integrated capital markets

    Explain how cost of the capital is computed in the segmented vs. integrated capital markets.

  • Q : What is Subsidiary bank State what is

    State what is meant by Subsidiary bank.

  • Q : Explain Return on Assets or ROA Return

    Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings