Technology Transfer in China
For many global
companies China represents a highly
attractive market in terms of size and growth rate. Yet China ranks lower in
terms of economic freedom and higher in political risk than some other
countries. Despite these risks hundreds
of companies have established manufacturing operations in China. This is
because the Chinese government makes selling in China contingent on a company s
willingness to locate production there.
The government
wants Chinese companies to learn modern management skills from non-Chinese
companies and to acquire technology. Some believe that Western companies are
bargaining away important industry know-how in exchange for sales today by
agreeing to such conditions.
Address
the following in your short paper
1. Should companies go along with China
s terms or should they risk losing sales
by refusing to transfer technology
2. What do you think might be the
long-term results of either solution
Include references and follow APA
guidelines while citing sources.
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