Managing Multinational Operations Essay Example | Topics and Well Written Essays - 1000 words

Managing Multinational Operations - Essay ExampleFrom this perspective, chinaware now stands as an investment paradise for conflicting investors due to several factors, such as cheap labor, incentives for transnational companies, and remainder in valuate policies that have been few factors from the list. Experts have indicated that as China was successful in surpassing the success ramble of USA in terms of FDI in the year 2002, there is a huge possibility that it may become the largest economy by the year 2020 that now seems quite possible (Ching, 2008). After becoming fragment of the WTO, there has been greater liberty in the sectors of industry and services, and decrease in customs duty has been other major factor of establishment of new foreign firms in China. In particular, studies have indicated that transnational companies peculiarly in the sectors of distribution, logistics, financial services, and telecommunications (PricewaterhouseCoopers, 2008) have benefited sign ificantly from such liberalization. in any case, analysis has shown that there has been introduction of various policies by the Chinese government to give privilege to foreign investors and multinational companies, in order to promote foreign investment in the country and that pass on be fruitful for any multinational firm that will be entering in China to establish vocation. A major step has been the implementation of collectivised market economy in China that has created an encouraging environment for new investments. Moreover, it is very imperative for a country to be constant in its tax policies and regulations that has been the case of China, consequently, resulting in positive arena for multinational firms to operate in the country. However, while planning to establish business in China, one should have an understanding that few strategies enjoy greater relaxation and liberalization, such as the businesses that bring in advanced technology, commission expertise and high- caliber talent (PricewaterhouseCoopers, 2008). Thus, if Acme is planning to penetrate in the Chinese market, it will have to deem efforts to focus on the quality while ensuring advance technologies in its different carry outes and procedures. Furthermore, Chinese government promotes multinational firms and foreign investors that facilitate the process of ecological construction, environmental protection, and conservation, and the more efficient use of resources and energy (PricewaterhouseCoopers, 2008). Besides such opportunities for multinational firms, there still exist few hurdles however, the Chinese government has been endeavoring to chaw with the issues to promote more firms in the Chinese market. For instance, firms that bring in foreign investment in China enjoy liberalization and relaxation in the processes of foreign exchange balancing, and raw materials sourcing (PricewaterhouseCoopers, 2008) that allow the firms to run the business more effectively in the country. Add itionally, in the past, firms had this limitation of using local market for materials however, now, they enjoy the relaxation of giving priority to either local market or the international market while buy raw materials and fuels. On the other hand, there are few restrictions for multinational firms and foreign investors in the process of acquiring approval on capital contributions and participation in some particular sectors of the Chinese marke