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Peoples Republic of China - Essay Example

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An essay "People’s Republic of China" reports that it has been cited as the leader in exportation and importation of goods and a possible superpower in the making. It, therefore, becomes a key player in international business, trading with various countries around the world. …
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Peoples Republic of China
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Download file to see previous pages Globalization has been instrumental in guiding business operations around the world in the modern business environment. But there are scholars such as Ghemawat (“Cosmopolitan” 3) and Khan, Palepu, and Sinha who still believe that most countries would have their operations rooted in their countries. The authors note that just as 90% of people fail to leave the countries where they were born, organizations concentrate most of their operations in the countries of their origin. For example, in 2004, the US companies that operated in foreign countries were less than 1% with 60% and 10% of those with foreign operations being based in Canada and the UK respectively. In this paper, the People’s Republic of China, PRC would be analyzed based on four key aspects: dimensions of distance, institutions, diffusion of technology and its industrial clusters.
Four dimensions of distance suggested by Ghemawat (“Distance” 138) have been adopted in analyzing the aspect of distance and include cultural, administrative, geographic and economic, CAGE distance. This framework has been noted to be important in helping managers point out and assess the effect of distance to their organizations. Different industries would be affected differently by these four dimensions. These dimensions encompass varied factors ranging from the readily apparent to the quite subtle. The cultural distance of a country largely determines people’s interaction with each other and with institutions and companies. Distance could arise due to the difference in race, religious beliefs, language and social norms, which affect trade. According to Ghemawat (“Distance” 140), with all factors held constant, trading between countries that share a language would be three times better than between counties without a common language. The unpopular Mandarin being the official language in China has significantly hindered international trade in the region. ...Download file to see next pagesRead More
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