1. The concerned threat is about intellectual property right of Subway in China. Subway brings the various intellectual property to China, but China is not a good environment for protecting the intellectual property. We call China as a Fake world. We can find out legal issues between international companies and the local Chinese companies easily.
In addition, CUMI failed to manage the external forces in the macro environment. Overlooking the importance in managing socio-cultural differences with its partner was detrimental. CUMI could have better persuaded its partner to focus on long-term profitability for the interests of both parties and their employees instead of focusing to be the biggest international company. The demerger caused CUMI to face many cost disadvantages as a foreign owned subsidiary in China due to legal regulations. In addition, it lost access to its partner’s raw
It is worth noting that the FDI distribution in China has been largely lopsided and this can be attributed to the imperfect and primitive legal regime . Additionally, the main reasons have been that some investors, especially from the US and MNCs countries, are a bit laidback due to concerns about the security and stability of their investments. Moreover, the Chinese from overseas (especially those living in Hong Kong) may employ linguistic as well as cultural links to keep contractual costs and information at bay. The overseas Chinese are known to contribute smaller amount of FDI compared to the non-ethnic ones. This can be attributed to the fact that the overseas Chinese have medium to small-sized firms.
China and western countries are certainly very different countries when it comes to many aspects such as geographical, political, social, historical and economical situation. Interpersonal relations are one of the main approaches we can highlight. As Feldman says, “western culture relies more on formal structures such as laws and rules, not personal relations, to provide order in society.” However, Chinese culture is more hierarchal, and “the emphasis on social harmony and respect for others—especially parents, teachers, leaders, and elders—is noble and has good consequences.” This affects deeply in the business structure and how the work is done. “Western business rules emphasize independent responsibilities where everyone has to face the consequences.” This means that the figure of the boss is not that distant to his subordinates. In China nonetheless, the boss figure is much more important because of the “face” (mianzi).
Because there's scarcity of talent and most companies can't afford to wait long to find the right candidate before someone decides to leave. Talent Development: (Expand points) talent development: growing Chinese leaders. A company in china may develop a great leadership method, however, when the leader goes to a new country, they are not supported by them. for example, when a foreign leader comes to china, he's facilitated well. received from the airport, makes them well accommodated, but if he goes to america, he'd just be handed an address and that's not wrong, that's just the cultural difference.
Evan Osnos suggests that although Chinese people consider themselves more cautious than Americans, psychologically they are willing to take higher risks with their investments. Moreover, while in the most developing countries level of education of parents determine the income of children, in China connections of parents are the most decisive factor which impedes social mobility in the country. • Importance and contribution of the book to general literature. In his book Age of Ambition Evan Osnos looked at today’s China from a very different prospective. Through the investigation of life
Therefore consumer behaviour is the top most priortiy in the challenges faced. Language is another area that needs to be worked upon. It is well known that English and other languages are less used and spoken in China. Managers and workers should know an efficient amount of Mandarin or Cantonese in order to communicate strongly. The culture and attitudes of the people of China is another challenge for the global manager, where he must seek to understand and accept it.
Reduced risk in international trade which means by maintaining a fixed rate, buyers and sellers between different country can agree on a price and not stand on the risk of later changes in exchange rate before the contracts are settled. This greater certainty would encourage investment. For example if China’s exporter is exporting to the US, a rapid appreciation in yuan would make its exports uncompetitive and the business and trading gone. In the discussion part has state that China keeps its currency low to be more competitive. If US import from China, a devaluation of US dollars would increase the cost of imports and reduce the profitability.
As a result, a market economy would naturally prefer those employees. The fear of Chinese immigrants was not purely due to economic reasons. In reality, Chinese workers and culture were seen as invasive and pervasive with contradictions to American values. Therefore, Chinese workers were not only seen as economic opponents, but as an epidemic that can erode away the very fabric of American society (Ryo
Indeed, for the sake of maintaining their social statuses, yearly commissions and relationships with government officials, many prosecutors in China decline to uphold procedural justice but choose to cooperate with those who have the arbitrary power. In truth, advocating procedural justice is to minimize the arbitrary government power and its impact to individual liberty. Many other western countries such as the United Kingdom, are relatively more successful in performing procedural justice. It is believed that endorsing procedural justice in the UK favors the cooperation between people and police and raising the legitimacy of police (Levin, Paul, Alistar and PC Andy, 2013). Indeed, procedural justice is not only essential for police and people but also can be applied in prisons.