Problems of Managing Joint Ventures in China Essay

Problems of Managing Joint Ventures in chinaware - Essay ExampleThe enterprises be busy in making their products and services more and more attractive for the consumers all around the world. They make changes in their products and services in order to meet the requirements of their culture and society.The ethnical changes, throughout the world, act as a strong challenge to the enterprises. Efficient cross culture management can guarantee flourishing worldwide mathematical operation of international enterprises in the multi-culture and region. The worldwide business dealings argon also flourishing in Chinese enterprises. Chinese enterprises have made it an aim to build up and make their name all around the world. Chinese enterprises are making progress in their fields of expertise to promote their abilities and talents throughout the world market. contrary companies have been working in China for many years, frequently by joint ventures with local firms and usually in the more de veloped coastal areas. Nowadays, however, government activity is now developing the areas with brusk infrastructure and encouraging investment in those areas. The poor infrastructure, illiterate public and employers with less knowledge about market miserliness concepts made it very difficult for the firms existing there and even for the firms making joint ventures to progress. In the central Shaanxi province, fifty four interviews were planned with the managers in 20 four join ventures clearly shows the prospective hazard in the way of a thriving join venture.As Chinese market is becoming the midpoint of attention of more and more distant investors the pitfalls of Chinese market, management and hurdles in its way to success are given proper thought and suggestions are made to solve these problems (Ahlstrom et al. 2003 Beamish, 1993 Child, 1994 Goodall and Warner, 1999 Peng, 2000). It is already known that in the previous twenty five years, almost 85 percent foreign firms, loca ted in China, are sited along the Coastal belt of China (SSB, various years). Since late 1990s, the Chinese government is busy in the developmental process of the areas with weak infrastructure and poor growth rate in order to get rid of the local regional differences. The Great Western Development Strategy (xibu da kaifa) was commenced in 1999 with a motive to encourage local and international investment in the country. It was a categorical effort to increase investment in those regions of China, mainly in claim but least likely to attract support on their own. Under its persuasion, an increasing number of foreign firms and joint ventures entered in the underdeveloped hinterland. In 2002, 31,822 foreign ventures had been set up in Chinas 18 interior districts and one municipality (SSB, 2003, p.678). All the regions carry some importance. In the same way, Chinas interior is of great importance, without development of those regions China wouldnt be able to progress in the internatio nal market. All facilities and technologies must be equally provided in the underdeveloped regions. For this reason, under the 7th Five year Plan (FYP) (1981-1985), Chinas economies were separated in to three regions, namely, the Eastern region, the middle region and the Western region (Linge and Forbes, 1990, p.68 and Chen, 2000, pp.9-10 Wei. 2000, p. 1).Traditionally, the Middle and the Western areas have been considered as one vauntingly part, the interior (Chen, 2000, p. 10 and Wei, 2000, p. 1). As stated in the 7th Five Year