China's Market Size and Economic Advantages

             China's attractive market size and the economic advantages of opening
             factories there raise a host of controversial issues. Without even touching
             upon human rights issues, it is easy to see the problems inherent in
             China demands that multi-national corporations transfer modern management
             skills and technology. Ideally, the relationship would be reciprocal: if
             companies choose to locate production facilities in China then they should
             be willing to share valuable information such as technological and
             managerial expertise. However, doing business in or with China is more
             complicated and tricky than this. Boeing and other companies would indeed
             risk losing sales if they transferred technology and/or managerial
             knowledge. Chinese companies that capitalize on this knowledge and
             technology would create an incredibly competitive market that would drive
             prices down and would also probably lower standards of quality. The
             repercussions for the environment as well as for human rights could be
             potentially devastating, as Chinese companies could operate with fewer
             restrictions and regulations in these areas. Because production costs would
             be potentially much lower for Chinese companies than for multinationals,
             it would be nearly impossible to compete with Chinese companies on the
             However, it is possible to strike a balance. If Chinese companies
             glean knowledge from the multi-nationals that locate there, such as
             Volkswagen, Isuzu, and Boeing, then perhaps import taxes could be levied on
             Chinese goods; that would at least ensure a fairer market. Transferring
             the technology could benefit industries that might benefit from further
             innovativeness; if Chinese companies are taught the fundamentals of an
             industry it is likely that the industry as a whole could benefit from added
             Because the bottom line is the most important thing for such
             corporations, however, the most likely outcome of complying with C...

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China's Market Size and Economic Advantages. (1969, December 31). In MegaEssays.com. Retrieved 23:50, May 19, 2024, from https://www.megaessays.com/viewpaper/200139.html