Busniess in China Research Paper Example | Topics and Well Written Essays - 1500 words

Busniess in China - Research Paper ExampleBy 2009 it was place the largest foreign currency reserves amounting to $2 trillion and was besides the largest holder of US treasury bonds (Tse, 2009). It has also become a world leader in international trade with import export forming 60% of its GDP (Tse, 2009). 1.3 billion Population of the field represents a huge market potential which no confederation can afford to ignore. Economy Based on the development level, the country is divided into three stinting spheres which be eastern, middle and western regions (Ma and Li, 2004). Eastern region is most advanced with good substructure, advanced cities, good management and administration (Ma and Li, 2004). Special economic z aces have been setup by the government in this region to provide better development opportunities. The middle region is not as well developed as the Eastern. However, it has well developed industry and is the main region which produces grain, edible oils and cotton (Ma and Li, 2004). The Western region is even so underdeveloped but has huge development potential for trade because it is the passage to different countries (Ma and Li 2004). fabrication forms 46.8% of the GDP and industrial production growth rate stood at 11% as per 2010 estimates (cia.gov, 2011). Culture Because of the countrys socialist background, its culture is highly influenced by this ideology. The Chinese put a great violence on relationships than transactions and power distance in an organization (secureonlineorder.net, n. d). The Confucian philosophy which they follow focuses on collectivism rather than individualism. They believe in what they call Guanxi that refers to a network of relationships among groups that cooperate and support one another (secureonlineorder.net, n. d). This is considered as legally valid and not bribery and is indicative of personal closeness by dint of exchanging of gifts and frequent contacts with retailers, suppliers, local government off icials and banks. Chinese are not too keen to focus on detail and technical expertise with their leaders autocratic behavior being accepted in return for security and harmony. Their communication is also less verbal and more through body language. They are never direct at saying no to things and rather express it through facial expressions and other roundabout ways (legacee.com, n. d). They feel that business relationships are the foundation of businesses and not any written agreements. quarrel problem is a barrier to exchange of ideas with the western organizations. Analysis of findings Facility location After having analyse the economy and culture of China we need to first look at the location of the new set. As seen earlier, Eastern China is the most developed area hence there would be stiff argument for resources there. The Western area is now the new focus area for the government hence the new facility should be located there. The region accounts for 71% of Chinas total lan d area and 29% of Chinas total population with ready approachability of labor force (Tan, 2010). Facility be here is 50% less than the Eastern region while ware hold, construction and office lease is as low as one third to three quarter of the cost (Reinhardt, 2005). Thus providing facilities to the employees like housing will not be a major issue with respect to cost or availability in any of the Western towns or cities. There will be some problems as infrastructure and communications network are not as well developed