Strayer University
October 28, 2012
Ray Betzell and Chiu Wai’s perspective on Shui Fabrics
Economy
Ray general manager of the American company feels the disappointment of the low Return of Interest (ROI). In launching this business on Chinese soil there were many barriers from Chinese government. Economically the business venture is more advantageous to the Chinese government rather than the American business because of the high tariffs placed upon American companies. Chinese’ textile trade market allows no negotiations on exports. Per capita, Chinese employees have the lowest wage (below world average). Chinese work for lower wages than Americans but American’s technology advances allow American workers to be more efficient and require fewer employees than their counterpart. Americans are struggling in their own country with high unemployment rates and rising poverty due to the economic downturn. The overall disappointment is that there is no flexibility in expanding in the American capital plan in the scheme of the Globe project.
Chiu is pleased because the business is economically beneficial to the Chinese government and the local area. The business is providing jobs for the Chinese people and stimulating economic growth for the Chinese government. China is the largest exporter in the world. Chiu feels that Americans should be satisfied with the ROI. Americans seem to be thought as greedy; Chiu along with local authorities may feel that Americans exploit Chinese people and their land.
Legal
Ray’s company is controlled by China’s government regulations on foreign businesses. America is a capitalistic nation, whereas, they are unobtrusive to regulate foreign businesses but instead have specific expectations and rules to be maintained with overseas companies. America is influential with the organization of Occupation Safety and Health Administration (OSHA). America also has a great concern for the environment
References: House, J., Hanges, J., Ruiz-Quintanilla, S., Dorfman, W., Javidan,, Dickson,, & Gupta, (Authors). Cultural influences on leadership and organizations:. Retrieved from http://t-bird.edu/wwwfiles/sites/globe/pdf/process.pdf CIA, The World Fact Book, https://www.cia.gov/library/publications/the-world- factbook/geos/hk.html[->0] Allen. (Author). (2008). the single most important thing in any business. Retrieved from http://entrepreneurs.about.com/b/2008/06/01/the-single-most-important-thing-in-any-business.htm [->0] - https://www.cia.gov/library/publications/the-world-