Market Expansion Feasibility Anaysis

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1) Describes the social, political, and legal structures and hierarchies of a country relevant to market expansion, citing specific references.
China runs a Communist system of government called the People's Republic of China (PRC) with authoritarian government management, people have limited rights to freedom in China, the nation has a population of 1.4 billion (the most populous nation in the world), and has a weak legal system because of uncontrolled corruption ("China Economy," 2015). There is low protection of intellectual property rights in China. China has the biggest manufacturing and exporting economy in the world. China is using its competitive advantages of (P&S) to attract large numbers of Foreign Direct Investments into the country (Dumon, 2014). China attracts FDI inflow of 123.9 billion and GDP per capita is $9,844 ("China Economy," 2015).

2) Compares the social, political, and legal structures and hierarchies of a country to those of the United States.
In comparison to China, the United States (U.S.) runs a Democratic political system where people have freedom to their rights, the nation has a population of 316.4 million, and has a legal system of checks and balances whereby one arm of the government does not control or manage the government 100% ("United States Economy," 2015). There is high protection of intellectual property rights in the U.S. The U.S. economy has the most advanced technology in the world, runs a standardized service corporation, robust in industrial and agricultural manufacturing, and attracts the biggest and leading financial market globally ("United States Economy," 2015). The U.S. attracts FDI inflow of $187.5 billion and GDP per capita is $53,101 ("United States Economy," 2015).

3) Describes the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies of a foreign country and those of the United States, citing real-world examples.
Cross-cultural communication issues that could arise between a U.S. business operating in China (host country) includes: (1) cultural diversity, (2) government
trade restrictions, and (3) protection of intellectual property rights. For example, while doing business in the U.S. is strictly business related and straight to the point, doing business in China is ingrained in bonding relationships before going straight into business. Therefore, a U.S. business people must first understand the cultural emphasis on bonding relationships before conducting business in China. Pay attention to establishing a good friendship before communicating about business.
Moreover, in the U.S., the government does not have trade barrier that restrict foreign businesses to form a joint venture with its nation's existing businesses before they can operate in the U.S. On the other hand, the PRC government has a strict trade restriction of having foreign businesses establish a joint venture with existing businesses in its nation before they can operate there.
Therefore, U.S. and other nations' business people need to be aware of PRC government trade regulations before making a decision to enter the nation for business expansion or not. For example, GM had to enter through a joint venture with SAIC because the Chinese government's trade restriction requires a foreign business to establish a joint venture with its nation's existing business or government business organization before it can do business in the nation ("How GM Wins in China," 2013).
In addition, while protection of intellectual property rights is volatile to insecurity in China, it is highly secured in the U.S. To alleviate this issue, U.S. business people and other nationals who are considering entering the Chinese market for global expansion needs to be aware of the insecurity and keep their vital intellectual property rights in ...