Briefly discuss the issues an organization would want toconsider or understand if it were interested in a business venture withinChina. Identifyand explain barriers to social perception....

Briefly discuss the issues an organization would want to consider or understand if it were
interested in a business venture within China.
China is a booming economy. But there are certain issues that companies need to
consider or understand for setting up business in China. These factors are discussed below.
Political and legal environment
China is a socialist state. It is a communist country. The philosophy of Chinese politics is
that resources should be owned and shared by people for social wellbeing. The resources and
industries are centrally controlled by the government. So the prices, jobs, manufacturing are
decided by the government (Country Profile: China 2008). The legal system of China is based on
civil law. The government holds the power to interpret the law (Country Profile: China 2008).
The law lacks a well defined and accurate interpretation. The political risks in China include
confiscation risk, social unrest, corruption and operational risks in areas of marketing and
finance. Enforcing the intellectual property rights, bureaucracy and lack of transparency of
government in China are important political and legal problem that international businesses face
in China.
Cultural environment
The culture of China is relationship driven. This means that the corporate entering in
China needs to develop a relationship before doing business, unlike back home where businesses
first do transaction and then build relationships. The relationships need to be reciprocal in nature
and the hierarchy need to be maintained (Country Profile: China 2008). Another interesting
aspect of Chinese is that attention is paid to certain colors and number. For example, red is
considered a lucky color. The Chinese prefer to hold on to their old traditions and maintain their
heritage. Diversity marks the culture of China as the population of China is comprised of
different ethnic groups. China does not have common cultural values shared across the
population which makes it difficult to standardize their marketing communication..
Identify...