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Essay / Research Paper Abstract
This paper discusses a joint venture between a U.S. and Chinese firm -- and the political and business climate in China that might impact the firms' ability to do business. Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: D0_MTchibus.rtf
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Unformatted sample text from the term paper:
a joint venture agreement with an Asian-based company. Having an "on-soil" representative in an Asian country to market and sell a U.S.-manufactured product tends to be more efficient and cost-effective
than attempting to oversee marketing activities from U.S. home base. There are cultural and governmental restrictions when it comes to doing business in Asia - restrictions that an Asian company
could better overcome. In order to take advantage of this, the U.S. microchip company made a wise choice in partnering with a
Chinese company in order to sell its microchip implant. However, before doing any sort of business in China, the U.S. firm needs to be well aware of what the political
and business climates are in this particular country. Event though the firms partner is a Chinese company, the U.S. company needs to know what is going on in Mainland China
in order to best manufacture its product. The purpose of this paper is to describe the political climate in China and how this climate could impact the joint venture that
has been proposed. The good news for our U.S. company is that with China pushing for World Trade Organization membership (and
finally being admitted to the organization), the country has begun several reforms, including relaxation of its stance against foreign investment and partnerships with Chinese companies (Roberts, 2002). These Chinese companies
were once considered "off-limits" to most foreign investors, but now are cautiously being welcomed. There are also financial incentives for foreign investment and joint venture partnerships: as of 1999, the
plan was for the Chinese government to phase in tariff cuts on a variety of goods, as well as an ending to all export subsidies (Roberts, 2002). This could be
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