Expanding your business to China Essay

in that respect be m any(prenominal) advantages to expanding your strain to mainland chinaw be. not tot aloney is china considered star of the commodiousst economies in the world, it besides has a huge emerging market that is distillery evolution (Startup Overseas). Although mainland China has embraced legion(predicate) Western commercial enterprise ethical motive and pr manageices, at that place be still numerous cross-cultural variations that can exploit it difficult to succeed without sufficient question and knowledge of the horticulture. Examples of these cross cultural differences take the Chinese attitude toward work and workplace, the cut into jurisprudences, and how Chinese descentes col applicationate with other organizations. more than differences involve how we market and sell a harvesting, and how pricing differs between our dickens countries. possibly the most important differences are those of honorable positions, such(prenominal) as fr y labor and sexism.A Chinese workers attitude toward the job and the workplace depends on what position they see in an organization. China is considered a collectivist society, which implys the mass of people in spite of appearance the society act in the interests of the group and non inescapably themselves (Geert Hofstede, 2010). The join States is considered an individualistic society and emphasizes the imwork forceseness of the individual. This overly applies to the way these countries do logical argument. A collectivist line of ingatherings organization whitethorn save a team of workers contributing to converge e genuinely last(predicate) the customers, whereas an individualistic duty whitethorn suffer several individual representatives who severally commence their own client list. a nonher(prenominal) difference in the workplace is how large an organizations queen hold is.Power distance is the accedeance that all individuals in the society are non equal (Geert Hofstede, 2010). China has a truly large power distance, which means its workers accept the fact that there is a hierarchy at bottom the organization, and they know their place within that organization. They expect power within the business to be distributed unevenly. The unify States has a let down Power Distance acceptance, which means that workers fagt accept that power is distributed unequally within the organization, and they expect to be interact as equals to even the people in the highest positions of the business. The Chinese also accept that conclusion making comes from the top, whereas in the U.S., every i wants their suggestion and public opinion to be heard, and they do not ever so accept decisions that are made within the organization.Thedifferences between Chinese and U.S. labor laws are subtle, but still outlay mentioning. In China, a normal working calendar week is 44 hours, with a maximum of 48 hours ( lonesome(prenominal) 4 hours of all overtim e is allotted). In the U.S., a normal working week is 40 hours, with overtime paid on any hours worked over that 40. Maternity leave is up to 3 months paid in China. In the U.S., Maternity leave is up to 12 months unpaid (at the attach tos discretion). Surprisingly, women in China puzzle out 80.5% of what men in the same position take shape, whereas in the U.S., women only pass water 70% of what men make in the same position (Guo).In China, businesses tend to plant an emphasis on per passwordal consanguinitys between business partners. An initial business meeting willing populate of hitchting to know the personality and lifestyles of the one you are entering into a relationship with (Graf). Chinese business owners will want a loyal friendship when considering associations. This governance of sociable networks and influential relationships that facilitate business andother hoi polloiings is called guanxi (Mah, 2012). In the fall in States, owners of a business as sound a s the workers within that organization hit to keep their personal and professional lives different. though some partners end up creation friends, and many an(prenominal) workers build friendships outside of the workplace, it is not the intention at the start of a business relationship.Gift giving is also a large cultural difference. In the coupled States, if a gift is disposed at the start of a business meeting, or the start of an association, it can be seen as bribery or a way to make businesses feel have in working together. Chinese organizations are much more accepting of gifts although definite etiquettes must be followed in come out for the gift to be given in good faith (Culture crossing over Guide). For deterrent example, gifts must be nicely wrapped and may not be opened make up away unless prompted to do so. Also, do not give any gifts such as clocks, flowers, or cutting instruments as it is considered disrespectful. talks style is a major difference between the United States and China. In China, social context, personal relations, and non-verbal behavior are very important in negotiation. There are usually many people from the friendship who attend the meeting to discuss any topics that need negotiation. Americans value legal contracts and documents over personal relationships, and do not put as much stock in body language. American businesses usually only send one or two people do the negotiating on behalf of the consummate companionship.For the purposes of this paper, let us assume that an American Company has seen great success with its play subject product. This caller is bearing to expand its business to China. There is usually a train for romances in any country and in China, 17.1% (roughly 223 million) of the nations population is infra 14 years old (Central intuition Agency). investigate also shows that the total retail gross sales of hornswoggles in China have outgrowthd by 14.2% since 2010 (HKTDC Research, 2014).T he Design of this take on would have to be carefully rethought, oddly if it is a doll or Barbie token toy. The doll would have to be re maked to gibe the needs of the churlren in China. Skin Color, Clothing, and accessories would all need to be redesigned. For example, although most girl-intended American Dolls wear pink, pink is considered a gender-neutral alter in China. The color white is also associated with death and mourning, so any conjugal union dress dolls would need to be recolored to the tralatitious Chinese color of red (KaiWen, 2010).The vestments of the doll would probably have to fix more modest. In looking at Chinese dolls, most are robed in Geisha style robes. The United States dolls tend to show more skin. The advancement of the doll would also have to be translated to Chinese. The company would also need to ward off any symbolism that might get out Chinese parents or even the government, such as any American paraphernalia, desire the flag, or anyth ing with a religious context, like a cross.Imagine the price of this toy is $5.00. The value of a $1.00 is equal to 117.78 (). That would mean that the exchange rate on the toy would be $588.90. But with the Purchasing Power Parity (PPP) factor, we know that Chinas market exchange rate is .6 ( institution Bank, internationalist Comparison Program Database, 2014). This means that China would in truth pay 60% of what the United States would pay for the toy. The price of the toy would be353.34 . This price could be adjusted depending on competition in the Chinese market. The American company would also need to increase the price based on exportation costs.A sale price, or discounted price, in China is also different from what a sale price would be considered in the United States. In the U.S., if a product is on sale, the advertisement might feel out 10% off. In China, they advertise the piece of the price that you would pay for, in this example 90% (Tyson, 2014). Good times for sale s would be around National Chinese Holidays, such as the Chinese upstart Year (Spring Festival), May Day, or the Mid-Autumn Festival. some(prenominal) sales channels can be used to elicit a product in China. Traditional avenues include major shopping centers, specialty stores, and franchise chains. There is also the internet platform and many sites such as Amazon or Baby.tmall.com. One of the best ways to geological fault into the toy market in China is to have the toy include educational or technological aspects. This would help pass the available channels of the toys to include museums, zoos, and electronic stores. This is very different from the United States, who tends to promote and market to the different genders. Most American toys are either for girls or for boys there arent very many gender-neutral toys. beneficial like in the United States, China has import and trade regulations. Some of these regulations include import inspection (Regulations for the Administration of reassessment of Toy Imports and Exports), attention to the potential risk of exposure of toys, China Compulsory Certification (CCC), and streamers such as plush toy fillings should be even and of an appropriate softness with no hard objects inside. It is also worth noting the normalisation Law of the Peoples state of China, where four levels of standards are stipulated national standards, constancy standards, local standards, and enterprise standards.This company will have to adhere to all of these standard and regulations in magnitude to export the toys from the United States to China. Another option for the company would be to open a factory in China, or use a preexistent Chinese toy factory to manufacture the toys and sell / distribute locally. In order to reach the more ruralareas of China, this company might consider making a deal with a Chinese company that already distributes to those small towns and rural areas. If this company does decide to open a factory in China , or utilize a preexisting factory, it will have to deal with ethical issues such as child labor, and sexism. pincerlabor has been a astray controversial issue for many years. The chinaware Law on the Protection of minor league was first passed in 1991, and the newly rewrite Minors Protection Law entered the draw off in 2007. Many International rights documents have also been implemented by the UN (depository library of Congress). Although the child labor conditions have been described as improved in China, there are actually no statistics or livelihood to back it up. We still hear reports of Child Labor issues existing in China. As a company looking to do business in China, it is important to manipulate certain standards within the organization that do not support and do punish child labor. Although women in China make a higher percentage of what men make (80.5%) than what women in American make compared to men (70%), there is still a lot of sexism in the society and the cu lture of Chinese businesses.For example, women must always agnize men first, and it is not acceptable for women to look men in the eye. Women are not allowed in higher or executive positions within the organization. Women are still anticipate to meet a nice man, get married, have children, and take care of the household. Not to mention the fact that having a son is extremely preferable to having a daughter in most Chinese families. darn this behavior would be considered abhorrent (mostly) in Western cultures, foreign businesses may actually benefit from Chinas backsliding in regards to women. Foreign businesses may operate the talented women for executive positions that Chinese businesses have ignored or cast excursion (Harris, 2010).While there are many differences between the Chinese culture and ethics from those of the United States, expanding a business in China can be reciprocally beneficial and successful. There is a isotropy between Chinese and American societies and l aws that must be found, or all parties may be unhappy. Before growing your business to a foreign country, much research and planning must be done. Or, as the Chinese proverb says, if a things worth doing, its worth doing well.Works CitedCentral Intelligence Agency. (n.d.). The World Factbook China. Retrieved from Central Intelligence Agency https//www.cia.gov/ program library/publications/the-world-factbook/geos/ch.html Culture Crossing Guide. (n.d.). China. Retrieved from Culture Crossing Guide http//guide.culturecrossing.net/basics_business_student.php?id=43 Geert Hofstede, G. J. (2010). Cultures and Organizations Software of the Mind. sassy York McGraw-Hill USA. Retrieved from The Hofstede Centre.Graf, R. (n.d.). 10 Major Cultural Differences mingled with China and the United States. Retrieved from Hubpages http//hubpages.com/hub/10-Major-Cultural-DifferencesChina-and-the-UnitedStates Guo, B. (n.d.). Chinas Labor Standards Myths and Realities. Retrieved from academia.edu http// www.academia.edu/165449/China_s_Labor_Standards_Myths_and_Realities Harris, D. (2010, 12 16). Sexism in Cina. A Good Thing for Foreign profession? Retrieved from China Law Bloghttp//www.chinalawblog.com/2010/12/sexism_china_style_a_good_thing_for_foreign_busine ss.htmlHKTDC Research. (2014, 09 18). Chinas Toy Market. Retrieved from HKTDC Research http//chinatrade-research.hktdc.com/business-news/article/China-Consumer-Market/China-s-toymarket/ccm/en/1/1X000000/1X002MRF.htm KaiWen. (2010, 11 09). Ask the Chinese Girl. Retrieved from Blogspot http//ask-a-chineseguy.blogspot.com/2010/11/colors-in-chinese-culture.html Library of Congress. (n.d.). Childrens Rights China. Retrieved from Library of Congress http//www.loc.gov/law/help/child-rights/china.phpMah, R. (2012, 11 23). Cultural Differences mingled with America and China. Retrieved from World-Class Business Etiquette http//www.etiquetteoutreach.com/blog_new-york-etiquetteguide/ agitate/92662/Cultural-Differences-Between-America-a nd-China Startup Overseas. (n.d.). Expanding a Business in China. Retrieved from Startup Overseas http//www.startupoverseas.co.uk/expanding-a-business-in-china Tyson, K.