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?© BrainMass Inc. brainmass.com October 9, 2019, 8:45 pm ad1c9bdddf
In my opinion, Boeing and other should definatley go along with China's terms and should not lose such an attractive business opportunity in the fastest growing emerging market of the world. It is to be understood that these firms are for profit organization and should strive to attain maximum possible returns to their stakeholders by pursuing profitable initiatives. Further, as long as these companies are ...
Doing business in China