China Bussiness Terms - Coursework Example

This would highlight the purpose of the businesses. The objectives mainly include earning higher profits and revenues. In addition to that, the expansion of the company and the aim of achieving a higher market share along with a good brand name or repute can also be the reason for a company’s compliance with a foreign nation.

After the objective is brought forward, rules and regulations can be easily set up and foreign policies can be well dealt with (Tutor2u.net, 2014). It is usually stated that the companies might lose market share if it decides to let go of a new or international market. Although, ethical and moral beliefs state differently. It is believed in their case that it is not appropriate to work alongside collective governments. In case the company decides to leave the market due to some reasons then the rival business will take the advantage and step up to get a hold of a higher market share.

Entering the market later makes it harder for the companies to gain a higher market share or at times a moderate market share. Therefore, both cases should be well thought out when making the decision. Question 2: I believe that the company should not transfer their technologies and hence prefer the first option that can prove to be the best for companies. The market in China is increasing in volume and is a growing market. The companies as a result aim at protecting and safeguarding their sales and thus, stay put to their production methods.