Question

Please study Chapter 7,and carefully examine the case study: "Foreign Companies in China Under Attack" please I want more 700 word

respond to the following Discussion Questions.

7-12. What factors do you think are behind these events? Do some research to find out whether there have been more such problems since this writing. Is it just American companies that are being targeted?

7-13. What can firms currently operating in China, or considerating investment there, do to lessen the likelihood of these problems for their managers? How about post COVID-19? Has anything changed in the past 6 months that would be considered new in this case?

PROFESSOR'S GUIDANCE FOR THIS WEEK'S LE:

Please insert some direction (ideas, guidance, ...) that helps learners to go about their engagement in line with what is expected of them.

As you know the trade, as well as working issues between China and the USA, are getting worst. Make sure you research the new events that indicate the actual complexities an international business has to consider having operations in both the USA and China.

.11 T-Mobile 12:20 PM 94% Done Helen Deresky - International Man... A 302 PART 3 . FORMULATING AND IMPLEMENTING STRATEGY FOR INTERNATIONAL AND GLOBAL OPERATIONS 7.9. What are the major challenges that a MNE need to face when it is considering implementing its strategies in emerg- ing markets? In particular, what are the challenges in human resource management? 7-10. What is knowledge management? Why is effective knowl edge management important to International joint ventures? Application Exercise 7-11. Research some recent joint ventures with foreign companies situated in India or Russia. How are they doing? Bring your information to class for discussion. What is the climate for foreign investors in developing economies at the time of your reading this chapter? CASE STUDY Foreign Companies in China Under Attack! While China is still a very attractive and growing market for foreign businesses, a number of prominent companies are experiencing a sharp increase in problems while operating there. This was confirmed by the AmCham China Business Survey in 2014, which indicated that 60 percent of members feel less wel- come than before, up from 41 percent a year ago. Their member firms report continuing challenges, including rising labor costs, inconsistent application of laws, confusing information, pres- sure from government-owned departments, political tensions, and slowing growth. In addition, a number of targeted attacks on foreign firms have deterred many European and U.S. firms from either new or increased investment in China. In targeting technology companies through an antitrust investigation, China's National Development and Reform Century Square, Nanjing Road, China Commission concluded that the U.S. chip manufacturer Qualcomm had used monopoly tactics to set preferable licens- ing fees. The move was seen as giving preference to local companies, and the U.S. Chamber of Commerce has accused the Chinese government of protectionism and violating its commitments according to the World Trade Organization, which China joined in 2001. Microsoft was also the subject or yet another investigation in early September as Chinese officials made unannounced inspections of Microsoft's offices in Beijing, Shanghai, Guangzhou, and Chengdu. This move followed a purchasing ban on Microsoft's Windows 8 PC software in May by the Chinese government, supposedly over security concerns following the revelations of spying by the United States made by Edward Snowden Targeting other industries, the U.S. food processor OSI Group, supplier to a number of fast- food chains in China for over 20 years, was accused of using expired meat. Chinese regulators and persistent reporting of alleged problems on state media put a sudden halt to OSI's operations. The authorities closed down the plant, and restaurants such as McDonald's and Burger King cancelled further orders with OSI. While there may have been a problem, the company was treated very harshly given that no test results were given and there were no reports of illness from the OSI products Chinese regulators have been targeting various industries, as well as technology and food processing, including pharmaceuticals, car companies, and in particular, high-profile companies. The U.S. Chamber of Commerce has accused China of using the antimonopoly law to force for eign companies to cut prices. Mercedes-Benz staff, for example, were shocked when ten men from the antitrust investigators from China's National Development and Reform Commission (NDRC) roughly entered the company's east China sales office near Shanghai's Hongqiao international airport and subjected employees to intense questions for ten hours, rifling through the offices and demanding data and other information. More and more foreign companies have been subjected to early morning raids and had their desks, computers, safes, files, and so on inspected and evidence" CHAPTER 7 · IMPLEMENTING STRATEGY 303 taken away, often downloading data from the companies' computers. Legal rights typical in Europe and North America are not acknowledged in China, and information is difficult to acquire about

Answer 1

1.

Business are facing hurdles operating the market of the country CH. Despite of having an attractive market for the investors and businesses, the country CH has brought problems for the companies. This fact has been proven by the AMC business survey held in the year 2014. Few challenges like increased labor costs, inconsistent government laws, political structure , etc. have deterred the foreign firms operating in the country CH.The major factor behind these event is to give importance to the local firms by creating obstacles for the foreign firms. There are still the problems that are being faced operating in the country CH. The firms are still facing problems with poor supply chain management and stricter regulations that are being imposed on the foreign firms. Not only the american countries, but most of the western firms and technology based firms are facing problems operating in the market of CH.

2.

Biggest problem in china is their government policies. The environment for foreign companies in china has been getting steadily tougher since 2006, When nation comes to end of Five year Schedule of Market opening measures it pledged as the price of admission to WTOAnother problem is their economies of scale especially population there . Labor are available at very cheap rates thereby allowing companies to lower their manufacturing cost consequently their selling price thus posing great threat to outside company as well as this provides outside companies opportunities in ChinaRight now due to various benefits available there many companies are planning to setup manufacturing capacities there due to large customer base and availability of cheap laborThis poses difficulties in form of competition , labor turn over and employee retention ratio as they are seeking better opportunities.

3.

Biggest problem in china is their goverment policies. The environement for foreign companies in china has been getting steadily tougher since 2006, When nation comes to end of Five year Schedule of Market opening measures it pledged as the price of admission to WTOAnother problem is their economies of scale especially population there . Labour are availble at very cheap rates thereby allowing companies to lower their manufacturing cost consequently their selling price thus posing great threat to outside company as well as this provids outside companies opportunities in ChinaRight now due to various benefits available there many companies are planning to setup manufacturing capacities there due to large customer base and availbility of cheap labourThis poses difficulties in form of compitition , labour turn over and employee retention ratio as they are seeking better opportunities.