A Foreign Perspective On Potential Problems And Conflicts In Sino Foreign Joint Ventures

3762 words - 15 pages

1. Table of Contents1. Table of Contents Page 12. Introduction Page 23. Problems and conflicts in Sino-foreign joint ventures Page 33.1. Different expectations of joint venture partners Page 33.2. Technology transfer Page 43.3. Localization of content Page 53.4. Control Page 63.5. Lack of trust Page 73.6. High employee turnover Page 83.7. Cross-cultural differences Page 93.7.1. Addressing problems Page 93.7.2. Precedent versus innovation Page 103.7.3. Responsibility and motivation Page 113.7.4. Performance Assessment Page 113.7.5. Leadership behaviour Page 123.7.6. Guanxi Page 133.7.7. Solutions to reduce cross-cultural differences Page 134. Conclusions and Recommendations Page 155. Bibliography Page 182. IntroductionSince China opened its doors to foreign investment and implemented economic reforms in the early 1980s, growth of international business partnerships in China has been dynamic. International joint ventures (JVs) between foreign and Chinese state owned enterprises have been the dominant mode of entry (Child & Yuan 1996, pp. 106-107).This year alone the number of Sino-foreign JVs has increased by 33.03 % (Ministry of Foreign Trade and Economic Cooperation, PRC 2003).JV failures in China are generally very high and only 44% of all Sino-foreign JVs are considered to be a success (Blanchot & Mayrhofer 1998).Due to the many failures and problems in Sino-foreign JVs, this report will analyse some potential problems and conflicts that foreign companies might experience in a Sino-foreign JV.After exploring the potential problems in these international JVs (IJVs) I will provide some recommendations for foreign organizations on how to solve these problems and improve the performance the IJV.3. Problems and conflicts in Sino-foreign JVsThere are many reasons why so many Sino-foreign JVs have failed or experienced difficulties. The following section takes a closer look at the causes of the problems and conflicts that were experienced by many foreign companies involved in an IJV in China.4.1. Different objectives and expectations of JVGenerally, the parties involved in an IJV have different objectives and expectations. These different objectives and expectations frequently lead to conflicts (Campbell 1997, p. 105).Normally, foreign companies are interested in market access to China, making profit, inexpensive labour and loose regulations.Chinese on the other hand are more interested in capital, acquiring and learning about advanced technology, foreign management expertise and earning foreign exchange through export. Are either party's priorities in danger, conflict is almost certain (Luo 1998, p. 157).In almost all US-foreign JVs it occurred that the US partner was mainly interested in penetrating the Chinese market, whereas the Chinese considered the JV as a way of increasing exports. Compromise appeared to be the best way to solve this conflict. A strategy for this case is to come up with a mutual decision to divide the products of the...

Find Another Essay On A Foreign Perspective on Potential Problems and Conflicts in Sino-Foreign Joint Ventures

Oil and Foreign Involvement in Arab Nations

1173 words - 5 pages The Middle East has been involved in many conflicts for most of its history. These conflicts have been in large part due to, natural resources and foreign involvement. The rich supply of oil in the Middle East has made it a region of interest for many non-Arab countries to support in order to ensure a steady flow of oil. As the importance for oil increased through the industrialization of the world, the need for it became magnified. This need

CISCO’s Operations and Strategies in Foreign Markets

1382 words - 6 pages customers so they can target a larger client base. Unlike other companies that use a more concentrated market, Cisco has a more direct approach in terms of advertising one-on-one analysis with an employee. Cisco is a multinational corporation with its headquarters located in San Jose, California. Currently it designs, manufactures, and sells networking equipment which is used throughout the world especially in industries that heavily rely on

Foreign Policy and Terrorism in North Korea

2102 words - 8 pages terror and mass abductions of other countries’ citizens in its foreign policy. The reasons for which the Democratic People’s Republic of Korea (DPRK) behaves so unpredictably and irrationally are diversified. First of all, the DPRK as a country is managed very irrationally – regimes of Kim Il-sung and Kim Jong-il are based on centrally planned economy which main aim is to sustain a 1-million army (by the population of North Korea of c. 23 millions

Foreign Investment in China

3875 words - 16 pages -venture enterprises in the fields of industry, agriculture, commerce, tourism, and housing construction. Among of the SEZs in China are Shenzhen, Zhuhai, Xiamen and Shantou.The sixth type of FDI capital inflows is from the China International Trust and Investment Corporation (CITIC). This corporation was established on 1979 to channel, absorb and use foreign capital to import advanced technology and equipment and to run joint ventures with foreign

foreign investment in indonesia

1102 words - 5 pages the last at the top five is East Java at U.S. $1.3 billion. So, foreign investment actually has become pros and cons in Indonesia. Because a lot of problems caused by foreign investment in Indonesia. The dominance control of foreign whether it be from the government or foreign investors or from international bodies are often detrimental to the people. However, foreign investment is also has an important role in efforts to accelerate economic

Foreign Investment in Australia

2902 words - 12 pages substantial investors in other countries, and Australia has long maintained a position as a net capital importer, drawing on foreign savings to allow faster development of domestic resources. Foreign investment in Australia in 1998 had reached $571 billion, of which $253 billion came from members of APEC. Today, foreign Investment totals over $700 billion.There are a number of types of foreign investment in Australia: (Table 3 reflects these figures

Arranged and Forced Marriages in Foreign Countries Prepare and argument on Foreign Issue Should foreign Cultures be allowed to arrange and force marriage because of cultural and religious beliefs? ...

2247 words - 9 pages Arranged and Forced Marriages In Foreign CountriesMarriage, the binding partnership of a woman and man; "The Happily Ever" fairytale we quietly desired one day, and continue to wish for in the lives of our children, and generations today. The biggest decision we make, but sometimes the most uneducated one of them all. From cultural traditions to religious beliefs, we plan and arrange the Wedding Event with the hope of a lifetime of successes. In

Foreign Influence in Persia

3295 words - 13 pages imposing limitations on the Shah's powers to grant concessions and contract foreign loans, which had come to equal the government's total annual revenues.13 Under Muzaffar ed-Din conditions desecnded to new depths of corruption and brutality. Governorships were handed out in return for gifts to the Shah and the Grand Vizier. The incumbent was responsible to the Shah for a certain amount of tax revenue, but anything above this that he managed to

Foreign Marketer In Indonesia

1063 words - 4 pages religious and belief. Hence, it is very important to understand their religions and its effect on the business operation or as such if foreign marketers would like to perform successfully in Indonesia, offending others and get a full cooperation and respect.Islam has got 5 Pillars of faith that affects they way they do business and life. Firstly, there is no god other than Allah and Mohammed is his prophet. Hence, everything that they do should follow

Article Review on Unleash Innovation in Foreign Subsidiaries by Birkinshaw and Hood

761 words - 4 pages . In the case of Espoir (Raman, 2003), failure to do get the approvals from the relevant parties led to disputes and conflicts (Holt et al., 2004), which are detrimental for the connection and collaboration among the organization’s divisions. Actually, managing individual awareness regarding the culture is not easy to approach (Hampton and Rowell, 2006). For these reasons, building a good connection between relevant parties is the key to achieve

Impact of Foreign Remittances on Economic Growth and Poverty Reduction in Pakistan

2476 words - 10 pages districts of Punjab, Sindh and Balochistan however NWFP is not portraying a clear picture. The empirical evidence showed that remittances effect economic growth positively and significantly. The study also found that remittances have a strong and statistically significant impact on poverty reduction thus suggesting that there are substantial potential benefits associated with international migration for poor people in developing countries like

Similar Essays

The Reason For And Importance Of Domestic Politics, Great Power Alliances, And Foreign Policy Makers In The Involvement Of Australia In The Four Post World War Ii Asian Conflicts.

4797 words - 19 pages , so overawed by the United Nations, that he lost sight of potential threats, such as the Communist victory in China. Evatt's Asian accord policy was only one facet of a larger general foreign policy, but it did attempt to bring Australia to a more independent and self-reliant state and to assume a greater responsibility in its own region. The peaceful means of settling disputes offered by the United Nations had wide appeal to the adherents to the

Nagotiations In The Joint Ventures. Essay

3411 words - 14 pages . Organization creates culture. The organizational culture is a set of coping skills, adaptive strategies used by members in and out of the system. The organization's culture has a powerful impact on the worker's or member's morale and productivity. It even influences the organization's image of itself which, in turn, is communicated to its public. The different cultures of managers in Joint ventures represented by differences in languages, interactions

Cultural Differences In Joint Ventures Essay

3260 words - 13 pages ESSAY TOPIC (1) :A joint venture is affected by the cultural distance between two partners. In what ways are joint ventures and types of international collaboration affected by cultural differences? INDEX INTRODUCTION…………………………………………………………………2 What is culture?…………………………………………………………………2-3 The Cultural Orientation Model……………………………………………….4 The cultural Gap…………………………………………………………………5-6 Understanding Cultural Differences………………………………………….6

The Possible Effects Of The Uk Entry Into The Euro On Foreign Trade And Foreign Direct Investment In The Country.

1491 words - 6 pages allocative and productive efficiency; consumer sovereignty remains as consumers would have a wider ranger of goods in the market.So what effects will it have on foreign trade with the UK joining this single currency? Will trade be boosted? If the UK decides to join the Euro, it will be joining the largest single market in the world outside the US. As a result of this, business can be sold more widely, achieving economies of scale. It also allows