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Microsoft in China

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Course Textbook
Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2015). International business: Environments and operations (15th ed.). Upper Saddle River, NJ: Pearson Education.


Write a paper incorporating the external influences that impact business. You should address each facet illustrated below. Your paper needs to be a minimum of three pages in length, double spaced, Times New Roman 12 point font, using APA style guidelines. The reference listings and title page do not count towards the minimum page requirement.

An abstract is not required.

Your paper should also include a minimum of four sources/references, in addition to your textbook. At least two sources must come from any of the academic databases located.

Please do not plagiarize others' work or submit a paper you have previously submitted. All sources quoted or paraphrased must have proper in-text citations with a corresponding listing in the reference page.

You are to choose one U.S. based company that has global operations in another country. You are to discuss each facet below and how it may impact the way the company you chose does business internationally. For example, the legal systems are civil law, common law, and theocratic law. If Coca-Cola does business in Iran, how does the theocratic legal system impact the way Coca-Cola does business? Thus, you are to;
MBA 6601, International Business 3
 Delineate the legal systems and discuss which legal system and political ideology applies to the country you chose that the company does business in.
 Delineate the economic systems and discuss which economic system applies to the country you chose that the company does business in.
 Discuss the culture of the country (both verbal and nonverbal) and how it may impact the way the company does business internationally.

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Microsoft in China
China is one of the most preferred destinations for businesses to set up their operations. However, success is not always guaranteed for multinationals seeking expansion opportunities in China. There are differences in Legal systems, Economic environment and culture of the country which can impact the way business is done.
Legal System
The legal system of China is referred to as socialist legal system by the government. The legal system of the People's Republic of China (PRC) is based on the PRC Constitution and is made up on a hierarchy of written laws, regulations and administrative directives ("Doing business in...", 2015). The However, the basis of this legal system is Civil Law. Because of the sudden shift of the power to China, the legal system of the country is evolving. Policymaking and administration is ambiguous, that is, sometime it can be highly centralized and formal and at other times it could be decentralized and informal. There are also gaps in the law. Policies can change all of a sudden without any warning and some of the changes may not be liked by many. Microsoft can face challenges due to such challenging legal environment. Chinese government can take advantage of technical intricacies in growing regulatory system to promote domestic companies and deter foreign competitors. One of the tools that the government is using is antitrust. Microsoft has already landed in soup because of allegations from Chinese antitrust regulators that Microsoft is engaging in anticompetitive behavior. Hence, there will always be uncertainty for Microsoft even if the company complies by all local ...

Solution Summary

The expert provides an analysis of legal, economic and cultural environment in China and how it impacts Microsoft