Business Systems Of Taiwan And China

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With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

To understand the differences between Japanese and Chinese business systems we must first understand the meaning of a “business system”. A “business system” is a “methodical procedure or process, used as a delivery mechanism for providing specific goods or services to customers in a well defined market” (1). Unlike the Eastern ways of doing business, Asian-Pacific business is heavily influenced by religion and the ways of society plays an important role in the approach they take on doing business. Before we compare and contrast two leading countries, it is

But in contrary, Ritter (2007) wrote that the country has always been committed in improving the development of its domestic business environment and always adhere to the objective of prioritizing quality over quantity of foreign investments, especially after the government learned from the increasing monopoly of foreign-invested companies that do not pose threats to economic security of the country only but most especially, to the capacity of domestic Chinese enterprises to begin independent innovation. Moreover, since China can no longer deny the fact that foreign investors and companies are a big help in economic booming, the national government has developed some measures in order to ensure that both domestic and foreign companies would work harmoniously, such as the nexus between the private entrepreneurs and Chinese party-state which, according to Jorgen and Xiaoqing (2008), has been developed in response to both globalization and reforms despite issues that this kind of political dynamics would create tension between the parties involved.

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1. What challenges do foreign firms face when they seek to transfer their home management style to China?