Modes of Entry, Cross-Cultural Factors, Country Risk Analysis for China
Shawn A. Drake
Global Business
Modes of entry, cross-cultural factors, country risk analysis for China
18 December 2011
Abstract:
For this paper I will identify and assess at least two modes of entry into the country of China. This paper will be based on prior learning and discussions in our class. I will examine the most appropriate mode of entry for a product or service into China. I will look at cross-cultural factors relevant to doing business in China. Lastly, I will address how these factors affect organizational structure, modes of management, staffing, recruiting, training, compensation, and expatriate policy.
Table of Contents
1. Modes of Entry into China
2. Chinese Society and Culture
3. Organizational Structure
4. Modes of Management
5. Recruiting Expatriates
6. Recruiting Chinese Nationals
7. Recruiting Chinese overseas
8. Recruiting Chinese returnees
9. Retention Strategies
10. Conclusion
11. References
MODES OF ENTRY INTO CHINA
In order to do business in China, one must start by looking at the modes of entry into China. This can be by a variety of methods. I will start by listing these below with a brief description of each.
Trading Companies and Local Agents: Beginning December 11, 2004, foreign companies operating in China will be allowed full trading and distribution rights. This is because of China's accession to the WTO. With careful selection, training and constant contact, US firms can obtain good market representation from a Chinese trading company, many of which are authorized to deal in a wide range of products.
Representative Offices: These are the easiest type of offices for foreign firms to set up but the law in regards to performing 'liaison' activities limits them. They cannot sign sales contracts, directly bill customers or supply parts and after-sales services for a fee.
Chinese subsidiaries: A locally incorporated equity or cooperative joint venture with one or more Chinese partners, or a wholly
Global Business
Modes of entry, cross-cultural factors, country risk analysis for China
18 December 2011
Abstract:
For this paper I will identify and assess at least two modes of entry into the country of China. This paper will be based on prior learning and discussions in our class. I will examine the most appropriate mode of entry for a product or service into China. I will look at cross-cultural factors relevant to doing business in China. Lastly, I will address how these factors affect organizational structure, modes of management, staffing, recruiting, training, compensation, and expatriate policy.
Table of Contents
1. Modes of Entry into China
2. Chinese Society and Culture
3. Organizational Structure
4. Modes of Management
5. Recruiting Expatriates
6. Recruiting Chinese Nationals
7. Recruiting Chinese overseas
8. Recruiting Chinese returnees
9. Retention Strategies
10. Conclusion
11. References
MODES OF ENTRY INTO CHINA
In order to do business in China, one must start by looking at the modes of entry into China. This can be by a variety of methods. I will start by listing these below with a brief description of each.
Trading Companies and Local Agents: Beginning December 11, 2004, foreign companies operating in China will be allowed full trading and distribution rights. This is because of China's accession to the WTO. With careful selection, training and constant contact, US firms can obtain good market representation from a Chinese trading company, many of which are authorized to deal in a wide range of products.
Representative Offices: These are the easiest type of offices for foreign firms to set up but the law in regards to performing 'liaison' activities limits them. They cannot sign sales contracts, directly bill customers or supply parts and after-sales services for a fee.
Chinese subsidiaries: A locally incorporated equity or cooperative joint venture with one or more Chinese partners, or a wholly