BUS 230 UNIT 5 DISCUSSION QUESTION

May 27th, 2016
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For many global companies, China represents a very attractive market in terms of size and growth rate. Yet, it ranks lower in terms of economic freedom and higher in political risk than other countries' markets because it has a communist government. Despite these risks, many popular and reputable companies have established manufacturing operations in China. This is largely because the Chinese government makes sales in China contingent on a company's willingness to locate production there. The government wants Chinese companies to learn modern management skills from other international companies and acquire technology. Some observers believe that when Western companies agree to such conditions, they are bargaining away important industry knowledge in exchange for short-term sales. Answer the following questions based on the situation described: Should companies comply with China's terms? Should they risk losing sales by refusing to transfer technology?

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BUS 230 UNIT 5 UNIT 5 DISCUSSIONFor many global companies, China represents a very attractive market in terms of size andgrowth rate. Yet, it ranks lower in terms of economic freedom and higher in political risk thanother countries' markets because it has a communist government. Despite these risks, manypopular and reputable companies have established manufacturing operations in China.This is largely because the Chinese government makes sales in China contingent on a company'swillingness to locate production there. The government wants Chinese companies to learnmodern management skills from other international companies and acquire technology. Someobservers believe that when Western companies agree to such conditions, they are bargainingaway important industry knowledge in exchange for short-term sales.Answer the following questions based on the situation described:Should companies comply with China's terms?Should they risk losing sales by refusing to transfer technology?In todays world economy, emerging markets serve as economic development engine, and theextensive effects of their amazing rise continue to play out. Emerging markets are countries suchas China,

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