This website uses cookies to ensure you have the best experience. Learn more

The Impact Of China's Economic Reform On The Operations Of International Firms

3268 words - 13 pages

Contents1.Introduction2.Background2.1 China's economic reform2.2 FDI in China3.Analysis and evaluation3.1 Chinese market environment3.2 Chinese management culture3.3 Chinese human resource3.4 Chinese industrial relations4.Conclusion5.References1. IntroductionSince China started economic reform in1978, China's economy shifted from central planning to markets, from agriculture to manufacturing and services, and from a closed to a globally-integrated economy. As a result, the Chinese economy has experienced spectacular growth. According to China's official statistics, the real GDP grew at an annual rate of 9.6 percent during 1979-2004 (NBS Jan 2006). Moreover, China, with its low wage rates, an expanding domestic market and a stable economic increase, give a strong temptation for multinational companies. At present, there are over 400 firms out of the Fortune 500 investing in more than 2,200 projects in China (Runckel 2005). China's booming economy has been the new frontier of growth in the global economy, and is quickly becoming a new growth engine for the world. In the speech of Chinese President Hu Jintao delivered at the 2005 Fortune Global Forum, he promised that China would keep opening up its market, find new ways of using foreign capital, improve on legislations and regulations for encouraging and protecting foreign investors, revamp foreign economic management, step up protection of intellectual property rights, and work still harder to help foreign investors and create an even better environment for trade and economic cooperation between China and the rest of the world ( CNN 17 May 2005).Based on the background of China's economic reform, this paper studies the impact on operation of international firms in four aspects: China's market environment, management culture, human resource and industrial relations. It argues that China's economic reform brought a distinct opportunities for international firms, but Chinese immature market regulations, unique management culture, lack of management talents and an uneasy industrial relations would probably become the barriers of successful operations in China's market.2. Background2.1 China's economic reformChina's economic reform was launched in 1978. There are at least three reasons initiating China's economic reform. First, after experiencing several decades of isolation and ten years of the 'Cultural Revolution' between 1966-1976, both the regime and people faced tremendous pressure both politically and economically (Riskin 1988). The second reason is that the increase in population that had occurred during the Culture Revolution, combined with a reduction in the production of consumer goods, resulted in shortages of food and clothing (Zhu and Warner 2000). At last, the economic gap between China and other developed economies and Asian newly industrializing countries became even wider (Warner & Edwards & Polonsky & Pucko & Zhu 2005:111).China's economic reform aims to transfer from...

Find Another Essay On The Impact of China's Economic Reform on the Operations of International Firms

Measuring the Impact of Critical Success Factors of Project on Project Success in the Telecom Firms

2175 words - 9 pages Measuring the Impact of Critical Success Factors of Project on Project Success in the Telecom Firms Introduction: Project success is one of the ambiguous concepts in project management. As each person or group of people who are involved in a project have different needs and expectations from the same project, it is very common that they take project success in their own way, as per their own understanding (Cleland & Ireland, 2004

DISCUSS THE IMPACT OF THE GREAT LEAP FORWARD (1958-1961) ON CHINA'S PEOPLE

1687 words - 7 pages The Great Leap Forward (1958-1961) had a vast impact on China and its people. Mao Zedong, leader of China’s communist party (1949-1973) aim in proposing the campaign was to ‘overtake all capitalist countries in a fairly short time, and become one of the richest, most advanced and powerful countries in the world.” Mao wanted to modernise China and sought to enhance the availability of equipment such as nuclear submarines for China

he role of economic geography in economic development and the impact of ICT on economic growth

2233 words - 9 pages countries are armed with good communications. On the contrary, some writers believe that geography still matters a great deal for economic interaction and for the spatial distribution of income.To discuss, I will concentrate on the role of economic geography in economic development and the impact of ICT on economic growth. From the existing inequality of economic development, we can see distance still matters in terms of economic transactions and

The Economic Impact of Piracy on The Game Industry

670 words - 3 pages If there is one topic that will spark debate amongst PC gamers today, it is piracy and the impact its economic impact on the gaming industry. Nearly everyone has an opinion on the topic, ranging from complete acceptance and support for piracy to utter disgust and disapproval. In the past years, since the SOPA and PIPA legislation was proposed to Congress, this issue has reached its critical mass, with a different PC game developer blaming piracy

The Impact of Fiscal Deficit on Economic Growth

1377 words - 6 pages Objectives The main objective of the study is to find out the impact of fiscal deficit on economic growth Secondary objectives are: - To find out the trend in Fiscal deficit and Economic growth - To find out the relationship between Fiscal deficit and Economic growth. - To find out the mean difference between the levels of Economic growth across the time period - To find out the mean difference between the levels of Fiscal deficits across the

The impact of economic crisis on marital life in Romania

1645 words - 7 pages the family's perceived financial inability to meet family necessities, is distinguished from economic conditions that include more structural indicators of poverty (e.g., Conger et al., 1990, 2002). In this study, we examined the impact of economic pressure on family relationships within the Romanian context. Drawing from Conger's family stress model of economic stress (e.g., Conger & Elder, 1994; Conger et al., 2002), we propose that economic

Economic Impact of Tourism on the Pacific Rim

1594 words - 6 pages Economic Impact of Tourism on the Pacific Rim Introduction The Pacific Rim is a grouping of countries in the Pacific Ocean[1] that start from the Korean peninsula down through south East Asia. Some of the common countries in this region are; Thailand, Hong Kong, Indonesia, Vietnam, Cambodia, Singapore, Malaysia, Brunei. The current economic situation has been gleam with poor performance from the main economic

Impact of Great Depression on International Relations in the 1930s

1170 words - 5 pages Impact of Great Depression on International Relations in the 1930s In the early 1920s the Great Depression hit. The chaos caused by the First World War was the main reason for the Great Depression. The USA had lent large amounts of money to other countries to help with their damages from the war. The loans that the USA made helped the countries to recover trade. Many countries tried to protect their industries by

The Economic Impact of Wal-Mart on Americans

2205 words - 9 pages from its vendors has cause the vendors to close manufacturing plants which in turn caused the loss of many jobs. All of this for the sake of keeping up with the high demands for low prices by what many companies consider as “large key customers”. So this in turn attributes to Wal-Mart being the maker of jobs while being the cause of job loss on a mass scale. Other companies have been left with no choice but to move operations off shore in

Impact of Earnings Management on Firms Profitability in Pakistan

1016 words - 4 pages Abstract This study is an attempt to examine the impact of Earnings management on the profitability of the firms. Earnings management has emerged as a vital issue in recent past for the firms, investors, analysts and the capital markets for profitability manipulation. The study was conducted on the companies listed at Karachi Stock Exchange. The sample included 98 companies comprising different sectors and taking five year financial data from

Discuss the goals of a firm and analyse the issues that impact on the ability of Australian firms to engage in external economies of scale

1240 words - 5 pages Businesses and firms are a vital part of the economy. They are organisations that effectively combine the factors of production to provide a good or a service. Firms are the major production units within the Australian economy. Their size, behaviour and performance impact upon the overall productive capacity. Firms contribute towards the growth of the economy with the production of goods with growth in sales, employment and regional development

Similar Essays

The Impact Of China's Modern Foreign Policies On Economic Growth

1113 words - 4 pages The Impact of China's Modern Foreign Policies on Economic Growth Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, China's gross domestic product has risen to seventh in the world, and its economy is growing at over nine percent per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous economic and political tactics to open the Chinese marketplace to

The Impact Of Wto Membership On China's E Commerce

4166 words - 17 pages connect with internet, 69.1% have there own web site, 21.6% develop E-commerce, 4.1% are shopping on the internet and only 3.4% deal with sale business on the internet. (China economy and trade 2002)III.WTO's EC-concerned Effect on ChinaWTO has challenged a lot of China's social, economic, cultural and scientific & technological structure; among them, the field which has been most deeply affected is E-commerce, which has largest divergence

The Rise Of China's Economic Growth

1722 words - 7 pages stricter government laws on reducing the air pollution since air pollution has no boundaries so these problem is not just China's but the world's problem. No country in history has ever developed so rapidly and not harmed the environment. China's rapid economic growth lead to a serious problems that everyone over looked and now China is choking on their own success. The Chinese government has eliminated 3 percent of the nation's GDP in 2004 because

China's External Relations And Their Economic Impact China Asean Relations : Perspectives, Prospects And Implication For Northeast Asia Interests

2107 words - 8 pages exports. China's GDP structure is based on the manufacturing sector.Regional Impact of China's Economic Growth in ASEAN +3China and Northeast Asian EconomiesChina's economy and those of Northeast Asia comprised of Japan, South Korea, Taiwan and Hongkong and are complementary. As China's economy welcome investors from foreign countries, the four Northeast Asian (NEA) economies benefited from the arrangement through direct trading with or investing