Global Trade is a common theme for expanding businesses It c

Global Trade is a common theme for expanding businesses. It can bring many challenges as business leaders and employees confront differences in the way each conducts business-related trade. Choose a country (USE CHINA) and research some of the differences in how this country conducts business-related trade that might be different than your home country (USA) Provide at least three examples of challenges you find in your research.

Solution

A true fact is that business is no longer, limited in scope to local markets. With the onset of the 21st Century topics like emarket, global supply chain management, better modes of transport and communication have made it easier for companies with higher capital to look to invest abroad.

The major advantages here include the fact that local markets get congested over a period of time, and there are opportunities in foreign countries that can be tapped and used as a business opportunity. Business as a whole can run only when one takes into account the larger picture of everything as every economy, in todays era is connected to each other.

In my research i have taken into consideration, the chinese economy. China is rushing towards becoming a developed nation and has immense business opportunities. It has become the manufacturing hub of great tech giants Apple, Microsoft and others to name a few, and the population here gives the scope for a large market, in which selling your product in terms of volume sales can be extremely effective.

The following are the major differences, in which China differs from USA in business related trade.

1) Government Intervention

China is generally considered to be a socialist country, where the basic questions of what to produce, how much in what quantity and for whom are considered by the government. People also in general are more favored towards buying alternatives that are made in china.The government takes a high stand and provides support to domestic companies, Therefore trading in the country with a foreign origin is very difficult unless one creates a very high quality product. On the other hand in America, such subsidies are not given to business houses and all end up at one ground generally.

In China, most of the assets are owned by the government, with people owning less than a quarter; while in the United States, assets are owned privately. This means that to do business in China, a company will most likely have to negotiate with the state. The bureaucracy involved in negotiating with the state can slow down the pace of business ventures.

Business Growth is Slow:-

Doing business in China often takes longer than it would in the US. American companies fail because they want to move ahead rapidly, but it is typical in the Chinese culture to establish a strong bond or relationship before closing a business deal. It is important for companies to understand they may need to meet with Chinese businesspeople multiple times before a business partnership or deal can be made.

Chinese business culture also has a longer decision-making period than Westerners are used to. It is not uncommon for Chinese businesspeople to extend the decision-making period past a deadline given to them.

Cost of Doing Business:-

The trump administration is particularly making it harder for outsourcing of jobs to China, meaning that higher taxes need to be paid to companies that tend to take business to china. Also, as a whole some companies have felt that the operational costs of running a business have become higher than it would take to invest in other markets. Therefore, for some companies it might just be a bad idea alltogether.

Appendix

Nevertheless, China’s population allows great potential for productivity and potential for demand. As wages continue to increase, so does the purchasing power of Chinese workers. Even with increasing costs, having a business presence in China represents a large opportunity for growth