International Expansion: Governance and Accountability, Research Paper Example

China is a leading market economy worldwide, presenting an attractive opportunity for foreign investors like Zinc Inc. Nonetheless, it is also a complex and multifaceted market for any foreign company to breakthrough easily. The challenge is compounded by the cultural standards of the Chinese people besides the legal and ethical standards. This paper analyses the possible impact of China’s legal, ethical, and cultural standards on Zinc Inc’s operations.

Legal

Like any other market, China has governmental regulations that control foreign business operations. As an emerging economy, the judicial systems are not transparent, and they keep changing from time to time (Froese et al., 2019). Regulations are also evolving in different spheres with everyday developments. Notably, the policies favor more domestic than international firms. As such, Zinc Inc might experience challenges in the process of acquiring approvals from the relevant authorities.

On the other hand, Froese et al. (2019) point out that China has friendly policies in different regions, promoting direct investments from foreign investors for firms in high-tech development. Hence, this would be a benefit for Zinc Inc now that it is in high tech development. The only issue is to identify the specific regions and start from there.

Ethical

Chinese market poses a difficult ethical dilemma to Zinc Inc because there are so much government scrutiny and demands on foreign companies’ operations (Ghosh, 2018). There are also creepy regulations and employees. This limits privacy and affects profitability. A good example is Google Company, which was forced to release private information (Ghosh, 2018). This was a tough dilemma for Google, but they opted to cancel part of their profitable services instead of sharing their private information. This was a costly decision. Zinc Inc is not exceptional and should be ready to face tough ethical issues of excess scrutiny, jeopardizing their business secrets.

Cultural

Zinc Inc will face cross country cultural dissimilarity. Unlike in the US, culture concept is not on the race but the diverse communities’ cultural values and language (Zeng et al., 2013). Hence, Zinc Inc will have a hard time before learning Chinese and language methods since most Chinese people do not know English. They will invest in having interpreters in the early stages as they set up.

References

Ghosh, D. (2018). The Tightrope Google Has to Walk in China. Harvard Business Review. Retrieved 20 November 2020, from https://hbr.org/2018/10/the-tightrope-google-has-   to-walk-in-china.

Froese, F. J., Sutherland, D., Lee, J. Y., Liu, Y., & Pan, Y. (2019). Challenges for foreign companies in China: implications for research and practice. Asian Business & Management, 18(4), 249-262. https://doi.org/10.1057/s41291-019-00084-0

Zeng, Y., Shenkar, O., Lee, S. H., & Song, S. (2013). Cultural differences, MNE learning abilities, and the effect of experience on subsidiary mortality in a dissimilar culture: Evidence from Korean MNEs. Journal of International Business Studies, 44(1), 42-65.https://doi.org/10.1057/jibs.2012.30