(xi) Brand X cannot only invested small amounts of capital in China and without considering a business strategy based on factors unique to the under-developed Chinese system of commerce because China’s undeveloped infrastructure, government regulations, and regional protectionism fragment distribution channels throughout China. ( https://wweb.uta.edu/insyopma/prater/IJPDLM%20logistics%20in%20China.pdf) For example, the legal system in China is improving and it cannot protect the foreign investors at this moment. Also, because of the unperfected infrastructure, foreign investors are difficult to find the distribution in China. The product production is also affected since the system in China is not effective enough. The unclear guidelines are the main problem that is faced by the foreign investors since they do not know how to follow the guidelines.
As one U.S. official stated, “I’m not sure anyone wants to be the first in line to whack China at the WTO.” Overall, China has a good free trade record and is really making an effort to join in the world economy. But China’s success has hurt some U.S. companies and talk of protectionism has started in the U.S. So what does Bush do? The administration praises free trade, but is seriously considering implementing tariffs for protection on certain items. Is this a contradiction?
They also misread Barbie’s popularity within the Chinese culture. They thought that they could get away with selling expensive clothing, spa and nail services, and other Barbie goods (Voigt, 2012). If they had localized the entire brand, then perhaps they would’ve received more interest. On the other hand, by localizing the Barbie brand, Mattel would’ve realized that a mega-store like the “House of Barbie” was a bad
1.4.5 The effect of Globalization on consumer’s attitudes and behaviour Many economic, political and cultural practices have been changed due to globalization, which has influenced the international acceptance of the consumer values and created the fear of the disappearance of local cultural traditions. According to Buehler and Halbheer (2012) globalization has a massive correlation both positive and negative with religious and national cultures. Most of the researches on globalization effects has been focused on studying the similarity and differences between psychological behaviour of consumers and globalization to know the social changes across countries. In addition, globalization may create new lifestyles as well as lead to the isolation
In response to globalization, many critics have become concerned with its effects on other cultures. Globalization is not merely the sharing of goods and people, but also the spread of ideology and values. So, what happens when the ideologies of different nations conflict? For those who support the cultural imperialism theory, the answer is simple? The more powerful countries’ ideas prevail, forcing the people of the less powerful country to quickly abandon their former ideas and adapt to the new ones.
The advantage of this strategy is that it allows Google to enter the Chinese Internet market by working with a local company which understands the environment much better than the Google. For instance, Google had problems with the Chinese government for censorship issues. The problem was that Google did not understand how censorship was handled in China, whereas, Baidu understands what should and should not be censored. Furthermore, Google was losing to its competitors because Google did not know the wants and needs of Chinese Internet users as well as their competitors. Therefore, Google could not offer the products and services that could compete with their competitors.
Globalization is not a new concept – trade, migration, market integration and capital flows have been practiced in various forms dating back centuries. China is at the epicenter of our globalized world and their success is attributed to the tenets of Adam Smith’s Wealth of Nations. However, opponents of the globalization believe if Smith were alive today, he would be repulsed by our modern day international business strategies. The general consensus among dissenters of globalization is the misguided belief that capitalism at any level is missing the moral sentiment espoused by Smith’s philosophical viewpoints. Even though Adam Smith would acknowledge that some Chinese citizens are casualties of globalization, he would conclude the economic development of China’s poverty stricken society unequivocally raised their standard of living.
These governments through no fault of the company, can be sanctioned simply because their host country disagrees with their country’s policy on a policy that can even be unrelated to their industry. Furthermore, other countries can subsidize their domestic production, allowing foreign companies to undercut the cost of the US made product. For example, Chinese officials pay subsidies to the rice industry, which allows those companies to beat the US products in a price comparison. Next, the political actions within a country may have variations of patent laws. A registered US patent may be valid in a number of markets, but the company may lose out on other markets simply because the political actions of various states require a filed patent in their c... ... middle of paper ... ...ns of their society.
Asset management companies have been created to manage these nonperforming loans, but the situation is far from stable. A lack of corporate governance has also created an environment where management of banks is opaque and corruption widespread. The risks inherent in this industry are great. Midway through 2005, Citibank faced significant barriers to growth in China. It had worked hard to become the dominant foreign bank in the country in expectation that the country's banking sector would be opened to all compe... ... middle of paper ... ...s well as the first international bank to launch two new investment products, Premium Accounts and Market Linked Accounts, in China (www.citigroup.com/citigroup/press/2005/050304a.htm.)
US policymakers fight that such policies affect US economic interests and made a pretty good contribution to job losses in the US. Different methods can be used to address disputes with China. There are different views on how the United States could better address, commercial disputes with China. Trump Management officials struggle that the United States should take a more antagonistic position against China’s trade policies, for example, by amassed number of U.S. WTO clash settlement circumstances brought against China, escalating the use of U.S. trade restorative laws on certain imports from China, describing it as a currency exploiter and frightening to enforce sanctions against China except it addresses various policies, such as mechanized theft of U.S. business trade secrets which damages U.S. economic