The influencing factors of multinational companies to enter China--澳洲Essay代写范文

澳洲留学生Essay代写范文:“The influencing factors of multinational companies to enter China”，这篇论文主要描述的是跨国公司能够通过全资或合资的方式来进入和开拓中国的市场，但是跨国公司在选择进行投资前需要对可能带来的未来收益进行评估，跨国公司在进入中国市场时主要受到了政策、文化、营销环境、人口等多方面因素的影响。

Diebold is a transnational corporation. There are two methods for entering into the market of China: wholly owned or joint venture. When choosing the method of entering into a new market, we should consider many factors which affect the future benefits of the company. The factors benefit the entering into the market of China are market factors and demographic factors. However, there are many factors which negatively affect the entering type of wholly owned. Thus, the type of entering into the market of China should be joint venture for Diebold.

The factors affecting the type of entering China 影响我国进入型的因素

Policy factors 政策因素

In China, there ismuch common political leadership: improving the economic problem to the height of political problem, using the leader’s personal charm and the usage of policy on fiscal. Since 1949, China is ruled by only one part, Chinese Communist Party. As other totalitarian nation, the policy and decisions are decided by supreme leaders. The advantage of this kind of policy is high efficiency. When one economy policy is made, all departments will pay much more attention on it and will quickly implement the policy (Weiss, 2015). However, unreasonable decision would lead to immeasurable loss. Moreover, the excessive concentration of power makes serous corruption in government of China (Fewsmith, 2016). Thus, the political leadership and the corruption would be the factors which affecting the type of entering China.

In addition, the policy of countries trade protection would be another factor which affecting the type of entering China.Even though China has joint in WTO, there are many policies which protect domestic industries from the competition of foreign goods. The methods of trade protection are tariff and some non-tariff barriers. The design of ATMs would refer the secret of RMB and the safety financing institution. Thus, it is more likely that the government would make policy to restrict foreign company.

The state owned enterprises is another factor which affecting the type of entering China (Menguc et al., 2015). The state owned enterprises account for the most part of GDP in China. In other word, monopoly is a feature of China's economic development. In special, all of banks in China are state owned enterprises or closely related to government. Even though there is no substantial indigenous competitor on the acquisitions of the ATM units, the government would specify a Chinese state owned enterprise to monopoly the industry.

In addition, restrictions on trade business is another factor which affecting the type of entering China. The design of ATMs would refer the secret of RMB and the safety financing institution. Thus, it is more likely that the government would make policy to restrict foreign company. Moreover, the government would set up special agencies to strictly inspect the investment activities.

Next, I will use the Root’s mode (1994) to consider whether these factors would stop the investment of Diebold. First, the China’s political situation is very table and China is ruled by only one part since 1949. Thus, Diebold does not need consider the general instability risk. In addition, since Xin Jinping took office, he actively to clean up the government corruption and make specific rules and regulations to put an end to corruption (Lam, 2015). Thus, the expropriation risk in China is not too high to stop Diebold. In recently years, the government of China has deliberated and approved many free trade zone, such as, Nansha Free Trade Zone, Shekou Free Trade Zone, Hengqin Free Trade Zone and China (Shanghai) Pilot Free Trade Zone. The free trade zone can provide more preferential trade arrangements than the relevant provisions in WTO on trade and investment. Moreover, Free Trade Zone allows free access to foreign goods with exempt tariffs. Thus, the Free Trade Zone decreases the operations risk of Diebold. Lastly, the transfer risk in China is relative small and cannot affect the entering of Diebold.

To sum up, there are policy factors (political leadership, corruption, the policy of countries trade protection, the state owned enterprises, restrictions on trade business) in China which affecting the type of entering China.However, the risks of policy cannot definitely stop entering in China. Thus, in order to decrease the political risks, it is better for Diebold to choose the enter type of joint venture.

Culture conflicts 文化冲突

According to the Cultural Dimensions of Hofstede (1991), the degree of inequality force distribution accepted by Chinese is high. Boss has great authority and has the right of decision, which is significant difference to the culture of Diebold. China is a country of collectivism orientation. In China, the interpersonal relationship is interdependence and inalienable. In specific, employee’s value comes from the organizations and individuals have a strong dependence on organization. The internal employee accountability of Chinese enterprises is not clear.

There is great difference system culture between China and Diebold. The society of China attaches importance to ethics. Chinese emphasizes on individual is more important than work, and focus on “relationship” and “face” (Mair et al., 2015). In the business administration, leaders tend to choose the flexible management. However, in Diebold, the work is more important than individual, they seek the ordering and effective management.

Marketing environment 营销环境

China has experienced a rapid and steady growth in past 30 years. China’s purchasing power has been greatly increased. China has become one of the most potential consumer markets all over the world (Zheng & Gao, 2015). Moreover, the banking business has been booming, which means that the demand of ATMs become more urgent. In recently years, the government of China has deliberated and approved many free trade zones, which allows free access to foreign goods with exempt tariffs. Thus, these factors of marketing are attracting the Diebold doing business in China. 

Demographic factor 人口因素

The population of China is ranking first in the world and the population density is about 143 people/km2 (WPR, 2015). Moreover, China has become one of the most potential consumer markets all over the world, which means that the great opportunities for selling ATMs. Thus, demographic of China is one of the benefits for doing business.

Conclusion 结论

The factors benefit the entering into the market of China are market factors and demographic factors. However, there are many factors, such as political leadership, corruption, the policy of countries trade protection, the state owned enterprises, restrictions on trade business and culture conflicts, which negatively affect the entering type of wholly owned. Thus, the type of entering into the market of China should be joint venture for Diebold.

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