Expanding your business to China Essay

in that respect atomic number 18 m whatever advantages to expanding your craft to chinaware. not save is mainland mainland China considered one of the largest economies in the world, it alike has a vast uphill market that is heretofore growing (Startup Overseas). Although China has embraced umpteen Western ancestry ethics and practices, thither are still numerous enshroud-cultural differences that displace build up it difficult to succeed without sufficient research and jockeyledge of the socialisation. Examples of these cross cultural differences include the Chinese attitude toward work and workplace, the labor laws, and how Chinese businesses collaborate with other organizations. More differences include how we market and eitherot a product, and how pricing differs surrounded by our two countries. Perhaps the close to important differences are those of ethical sites, such as squirt labor and sexism.A Chinese workers attitude toward the job and the workplace de pends on what position they aim in an organization. China is considered a collectivist society, which take to bes the volume of bulk deep down the society act in the interests of the group and not necessarily themselves (Geert Hofstede, 2010). The United States is considered an individualistic society and emphasizes the importance of the individual. This also applies to the trend these countries do business. A collectivist business whitethorn energise a team of workers contributing to satisfy all the customers, whereas an individualistic business may have several individual representatives who each have their own leaf node list. Another difference in the workplace is how large an organizations governwork forcet agency Distance is.Power distance is the needance that all individuals in the society are not equal (Geert Hofstede, 2010). China has a real large author distance, which means its workers accept the fact that there is a hierarchy within the organization, and the y know their place within that organization. They expect power within the business to be distributed unevenly. The United States has a lower Power Distance acceptance, which means that workers dont accept that power is distributed unequally within the organization, and they expect to be treated as equals to even the community in the highest positions of the business. The Chinese also accept that decision making comes from the top, whereas in the U.S., e genuinelyone wants their suggestion and opinion to be heard, and they do not always accept decisions that are made within the organization.Thedifferences between Chinese and U.S. labor laws are subtle, but still worth(predicate) mentioning. In China, a normal works week is 44 hours, with a maximum of 48 hours ( but 4 hours of extra time 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 u p to 12 months unpaid (at the confederacys discretion). Surprisingly, women in China find 80.5% of what men in the same position make, whereas in the U.S., women only make 70% of what men make in the same position (Guo).In China, businesses unravel to put an emphasis on personal relationships between business partners. An initial business come overing will consist of getting 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 arranging of social networks and influential relationships that facilitate business andother dealings is called guanxi (Mah, 2012). In the United States, owners of a business as well as the workers within that organization strive to keep their personal and professional lives different. Though well-nigh partners end up being friends, and many an(prenominal) workers build friendships outside of the workplace, it is not th e intention at the start of a business relationship.Gift well-favored is also a large cultural difference. In the United States, if a gift is given at the start of a business meeting, or the start of an association, it finish be seen as bribery or a way to make businesses feel obligated in working together. Chinese organizations are much more accepting of gifts although certain etiquettes must be followed in order for the gift to be given in serious faith (Culture Crossing Guide). For example, gifts must be nicely wrapped and may not be consecrateed right away unless prompted to do so. Also, do not give any gifts such as clocks, flowers, or trimming instruments as it is considered disrespectful.Negotiation style is a major difference between the United States and China. In China, social context, personal relations, and non-verbal behavior are really important in negotiation. There are usually many people from the political party who attend the meeting to discuss any topics tha t need negotiation. Americans lever 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 entire company.For the purposes of this paper, let us assume that an American Company has seen huge success with its toy product. This company is looking to expand its business to China. There is usually a demand for toys in any country and in China, 17.1% (roughly 223 million) of the nations population is under 14 years doddery (Central Intelligence performance). Research also shows that the total retail sales of toys in China have increased by 14.2% since 2010 (HKTDC Research, 2014).The Design of this toy would have to be carefully rethought, particularly if it is a doll or Barbie image toy. The doll would have to be remanufactured to suit the needs of the barbarianren in China. spit out Color, Clothing, and accessories would all need to be red esigned. For example, although most girl-intended American Dolls wear knap, pink is considered a gender-neutral color in China. The color white is also associated with final stage and mourning, so any wedding dress dolls would need to be recolored to the handed-down Chinese color of red (KaiWen, 2010).The clothing of the doll would probably have to become more modest. In looking at Chinese dolls, most are dressed in Geisha style robes. The United States dolls tend to show more skin. The packaging of the doll would also have to be translated to Chinese. The company would also need to avoid any symbolism that force offend Chinese parents or even the government, such as any American paraphernalia, like the flag, or anything 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 transmute rate on the toy would be $588.90. But with the get Power Parity (PPP) factor, we know that Chinas mark et exchange rate is .6 (World Bank, International Comparison Program Database, 2014). This means that China would actually pay off 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 found on exporting 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 business leader say 10% off. In China, they advertise the percentage of the price that you would pay for, in this example 90% (Tyson, 2014). Good times for sales would be around National Chinese Holidays, such as the Chinese spick-and-span Year (Spring Festival), May Day, or the Mid-Autumn Festival.Several sales channels can be use upd to promote a product in China. traditionalistic 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 break into the toy market in China is to have the toy include educational or proficient aspects. This would help broaden 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.Just like in the United States, China has import and grapple regulations. Some of these regulations include import inspection (Regulations for the Administration of Inspection of roleplay Imports and Exports), attention to the potential danger of toys, China Compulsory Certification (CCC), and tireds such as plush toy fillings should be even and of an appropriate fuzziness with no hard objects inside. It is also worth noting the Stand ardization Law of the pots Republic of China, where four levels of standards are stipulated national standards, industry standards, local standards, and enterprise standards.This company will have to adhere to all of these standard and regulations in order 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. Childlabor has been a widely controversial issue for many years. The PRC Law on the Protection of Minors was first passed in 1991, and the newly revised Minors Protection Law entere d the force in 2007. Many International rights documents have also been implemented by the UN (Library of Congress). Although the child labor conditions have been described as improved in China, there are actually no statistics or documentation 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 toughened certain standards within the organization that do not support and do penalize child labor. Although women in China make a higher(prenominal)(prenominal) 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 culture of Chinese businesses.For example, women must always greet men first, and it is not delicious for women to look men in the eye. Women are not allowed in higher or executive positions within the organization. Women are still expected 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. While this behavior would be considered abhorrent (mostly) in Western cultures, opposed businesses may actually acquire from Chinas oversight in regards to women. Foreign businesses may accept the talented women for executive positions that Chinese businesses have ignored or cast of characters aside (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 mutually beneficial and successful. There is a equaliser between Chinese and American societies and laws 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 Chin a. Retrieved from Central Intelligence Agency https//www.cia.gov/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. New 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 personal line of credit? Retrieved from China Law communicatehttp//www.chinalawblog.com/2010/12/sexism_china_style_a_good_thing_for_foreign_busine ss.htmlHKTDC Research. (2 014, 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 Between America and China. Retrieved from World-Class Business Etiquette http//www.etiquetteoutreach.com/blog_new-york-etiquetteguide/bid/92662/Cultural-Differences-Between-America-and-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.