Globalization has brought Chinese companies with four significant opportunities to do business. The first opportunity is the reduction of manufacturing costs, which are mainly caused by scale economy (Bird & Rajan 2001). According to Hitt, Ireland & Hoskisson (2007), the concept of scale economy is that a firm’s unit cost decreases as the output increases. Because globalization leads Chinese companies to expand worldwide, they produce more output and manufacture under the economies of scale. Therefore, the companies’ manufacturing costs could be declined. The next positive aspect of globalization is the improvement of product quality because of the widespread transfers of foreign technologies. One typical example provided by Farug (2010) is that Chinese Sport Utility Vehicle (SUV) producers are now taking full advantages of technology transfers so as to enhance their automobiles’ quality. The third helpful effect is that globalization provides companies an access to external financing through the international financial market. As a result, they can achieve efficient capital manageme...
With the development of China, the economy of China has become the World’s second largest after the US. On the other hand, the ...
Introduction: Who here has a license? Who else is tired of overpaying for a car when you will likely want another in a couple years? Well, two Chinese car companies (Geely and Chery) are going to try to help out and offer cars that are much cheaper then any car on the market. The problem is finding a spot in the American car market because of prejudice in American and trouble finding backing. Even though there is a lot of skepticism towards Chinese car companies securing a foothold in the American car market, with the right marketing and not rushing into the market, there is a good chance that the Chinese car companies will follow the Japanese car companies and carve a spot in the American market.
The article also give snap shot of the foreign companies who misjudge the Chinese culture, competition, size the market, and some other factors, have been badly affected by investing in china.
In recent years, China's service outsourcing have been expanding from scratch, and gradually expand the field, scope of business mainly related to Information Technology industry, producing services, as well as cultural and creative industries, the target involving Japan, Korea, Europe, America and India. In Shanghai, Beijing and other cities formed a group of outsourcing industry cluster, with significant economic benefits of international service outsourcing park; local outsourcing companies grew rapidly, and gradually change the pattern of the first to foreign-based.
Dierkes Meinolf from New York, Oxford University is an author of various books. In this book, the author stresses on the learning strategies and process of Chinese firms. He argues that the success of the Chinese firms is because of implementation of good organizational and learning knowledge. The Chinese government is well connected to the global market that makes its economy to grow due to the different innovations and qualitative improvement of the existing manufacturing firms. The area where the Chinese economy has improved is on the manufacturing and processing sectors where they range higher than the Americans.
Since China joined the WTO in 2001,which has significantly further opened up the massive Chinese market for foreign investments and trading. China has witnessed a remarkable economic growth and due to its huge population, China has become a major player in the world economy. Furthermore, China has a huge potential consumer market due to a dramatic expansion of the middle class in China (KPMG, 2004). Therefore, China appears to be one of the most attractive markets for many multinational companies (KPMG, 2004). Since 2003, China has become the biggest target country for international investments following by the United States (KPMG, 2004). In addition, China has recently further liberalized the government regulations and restrictions toward foreign business operation in China. These basically allow foreign firms to pursue their preferred entry mode choices. However, the Chinese market is heterogeneous, large, complex and not easily accessible (MOFCOM, 2013). Therefore, the choice of the entry mode is significantly considered as a frontier issue in the international marketing (Root,
However, the impact it has made on China can be considered to be great as it brought China under the limelight in the global economy. Globalization has had many positive and negative ramifications on the Chinese economy. In the short run, it may be so that the negative impacts outweigh the positive impacts, but that is easily debatable. This is because all the negative impacts of globalization can be corrected with economic policies that can be efficiently undertaken by the Chinese government. In this manner, China in overall will be able to enjoy all the benefits of globalization and contribute more to the rest of the world as it continues to grow economically and socially. In today’s world, globalization is an important part of the development and prosperity of each nation and China too should be able to reap from its benefits. Today, as China proudly holds a place in the global economy as the world’s second largest economy and most populated country in the world, it can be said
Wei, J. Q., & Rowley, C. (2009). China. In C. Wankel (Ed.), Encyclopedia of Business in Today's World (Vol. 1, pp. 268-272). Thousand Oaks, CA: Sage Publications Inc. Retrieved from http://0-go.galegroup.com.library.dcccd.edu/ps/i.do?id=GALE%7CCX3201500172&v=2.1&u=txshracd2500&it=r&p=GVRL&sw=w
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
Globalization has caused the world to change. Our country, China has been dramatically changed by globalization. Our people have moved to cities, and our industry has exploded. We have had huge advances in technology along with education improvement. Despite the fact that China has changed so much, there are still many issues that plague it. China faces serious environmental concerns. New diseases and viruses that are not indigenous to China can cause a wide range of sickness in the new area. Despite some of the the improvements in China that are a result of globalization, the negatives that globalization has brought to China are more than the benefits.
Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
Production is very essential in the growth and development of the economy. For the economy to grow and have a wide development, the production sectors need to work with the aim of getting the maximum. The location and site at which the production is carried out determines much on whether the firm will earn more profits or not. However, for the case of China, some of her production industries had to shift to the United States of America due to conducive working and production environment. It is as a result of the relatively reduced production costs and favorable profits earned. Hence, below are the related production costs that will favor the profits to increase effectively.
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that is across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect in the global economy. The American companies