1.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 country markets because it has a communist government. Despite these risks, Volkswagen, Isuzu, and Boeing are just a few of the hundreds of companies that have established manufacturing operations in China. This is due in large part to the Chinese government making sales in China contingent on a company's willingness to locate production there. The government wants Chinese companies to learn modern management skills from non-Chinese 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 sales today. Should Boeing and other companies go along with China's terms, or should they risk losing sales by refusing to transfer technology
2. Despite the difficulties, many technology companies experienced when the dot-com bubble burst - Internet commerce (e-business) is here to stay. What resources does an International Internet retailer need other than merely a storefront on the Internet? Does it require fewer physical, financial, and human resources than a traditional retailer, or just as many? Explain.
Use the Library search engines and resources to research one of the following companies (Yahoo, Google, EBay, AOL, or other internet companies you may be aware of) and explain why it is so successful despite the failures of other dot.com organizations. Explain what you think made this company so successful.
1) Boeing should definitely go along with China's terms and should not risk losing sales by refusing to transfer technology because China is such an attractive and vast market that for-profit companies like Boeing cannot afford to miss and thus, there is no harm in complying with local regulations.
The bargain in terms of exchanging industry knowledge for sales today will prove to be beneficial for Boeing in the longer run, as China is a strategically very important market for global companies. Further, this decision will ...
For many global companies, China represents a very attractive market in terms of size and growth rate.