M6A1 SHORT PAPER DYNAMICS OF THE GLOBAL ECONOMY

M6A1 Short Paper: Dynamics of the Global Economy

China is a very attractive market in terms of size and growth rate for many international businesses. However, compared to certain other nations, China ranks lower in terms of economic freedom and higher in terms of political risk. Numerous businesses have set up manufacturing operations in China in spite of these dangers. This is so that businesses can only sell in China if they are willing to move their production there, as required by the Chinese government. The government wants Chinese businesses to acquire technology and learn cutting-edge management techniques from foreign businesses. Some claim that by accepting such terms today, Western corporations are bartering away crucial industry know-how in exchange for revenue.

Include the following in your brief essay:
Should businesses accept China’s demands or risk losing business by refusing to share technology?
• What potential long-term effects do you believe either solution might have?

Cite sources correctly using APA style and references.
Text for the class below:
International Business: The Challenges of Globalization, 7/e, Seventh Edition, Wild, John J. 2013 Prentice Hall

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