Should companies comply with China’s terms?
When dealing with foreign markets, it is imperative that the terms and conditions being dictated are adhered to. In this case, China hosts a large market where foreign investors are likely to boost their sales with their production. The only thing they have to lose is the knowledge they have on management and their technology. China is among the leading nations with a growing economy and this makes it a perfect avenue to cash in on the sales (Sardy et al. 2010). Foreign markets may learn a thing or two from this and transfer the same to their countries. Trading in Chinese quarters may be a daunting task for other Western regions. This is because some of the capital earned stays in the nation, which works to boost the economy. In order to capitalize on the growing market, it is imperative that companies comply with China’s terms. This may give them time to also grow, and cash in on the opportunity.
Should they risk losing sales by refusing to transfer technology?
Western markets have always been superior in terms of technological advances. However, the coming up of the Eastern market in terms of technology is proving to be challenging. Cheaper and diverse products are coming up from the Chinese market, which enables the nation deeper penetration into more foreign markets (Hao, 2013). Foreign markets should not risk sales by refusing to transfer technology to China. China does not have every technology available, and neither do other foreign markets. A lot can be learnt from the companies present as ideas can be shared and everyone can learn from the other. The rapid growth of the business environment ensures that foreign markets penetrate even the smallest economy (Tsalikis & Li, 2008). By refusing to transfer technology, companies may risk facing financial meltdown.
References
Hao, A. (2013, May 25). “China and an ethical mapping of the global economy.” Huffington Post, Business. Retrieved from http://www.huffingtonpost.com/american-anthropological-association/china-global-economy_b_1834274.html
Sardy, M., Munoz, M. J., Sun, J. J., & Alon, I. (2010). Dimensionality of business ethics in China. Competitiveness Review: An International Business Journal Incorporating Journal of Global Competitiveness, 20(1), 6-30. Retrieved from http://scholarship.rollins.edu/cgi/viewcontent.cgi?article=1068&context=as_facpub
Tsalikis, J., Seaton, B., & Li, T. (2008). The international business ethics index: Asian emerging economies. Journal of Business Ethics, 80(1), 643-651. Retrieved from https://datapro.fiu.edu/campusedge/files/articles/lix2783.pdf
