Peoples Republic of China Essay Example | Topics and Well Written Essays - 2000 words

Peoples Republic of China - Essay ExampleGlobalization has been instrumental in channelise business trading operations around the world in the modern business environment. But there are scholars such as Ghemawat (Cosmopolitan 3) and Khan, Palepu, and Sinha who still view that most countries would have their operations rooted in their countries. The authors note that just as 90% of people fail to leave the countries where they were born, organizations concentrate most of their operations in the countries of their origin. For example, in 2004, the US companies that operated in foreign countries were less than 1% with 60% and 10% of those with foreign operations being based in Canada and the UK respectively. In this paper, the Peoples Republic of China, PRC would be analyzed based on four key aspects dimensions of standoffishness, institutions, diffusion of technology and its industrial clusters.Four dimensions of distance suggested by Ghemawat (Distance 138) have been adopted in an alyzing the aspect of distance and include cultural, administrative, geographic and economic, CAGE distance. This framework has been noted to be important in helping managers point out and assess the effect of distance to their organizations. Different industries would be affected differently by these four dimensions. These dimensions encompass varied factors ranging from the quick apparent to the quite subtle. The cultural distance of a country largely determines peoples interaction with each other and with institutions and companies. Distance could arise repayable to the difference in race, religious beliefs, language and social norms, which affect trade. According to Ghemawat (Distance 140), with all factors held constant, trading between countries that share a language would be three times better than between counties without a common language. The unpopular Mandarin being the official language in China has significantly hindered world(prenominal) trade in the region.