Custom term paper on INVESTMENT DECISIONS FOR GERMAN NON-PUBLIC MULTINATIONALS IN CHINA

According to Fung, one of the key elements of China’s economic reform process has been the encouragement of foreign direct investment. Since late 1970s, China has gradually opened its economy for foreign businesses and has attracted large amount of direct foreign investment. At the same time, China’s policies toward FDI have also experienced various changes on their policy priorities (2002, pg 3). However, China’s reform process in the economic area has an important and significant part – the FDI (Foreign Direct Investments) inflow’s promotion. China received the importance and a kind of fame through the almost twenty years (when the economic reform took place): it became nearly the most needed destination for an investment that can be defined as cross-border one. China needed almost three decades to have a success. As far as I am concerned, China is one of the most successful and profitable countries in the world in the contemporary century. Although it has not big square of the country and great density of population, China’s nation always was very careful, assiduous and working, thus, they now has a good level of development of economic and health care. Moreover, the general condition of the country give Chinese people an opportunity to modify their technologies and workforce. Therefore, China is seemed to be the world biggest FDI recipient (from 1990s to nowadays).
I am sure China’s organizations had a success thanks to accurate and correct way of training, development, behavior of their employees, its organization and other aspects. Training helps organization to make the adaption in team of new employees easier, to make employees performance better, to improve and update employees’ skills and knowledge when the job demands change, to make team work more successful, to be prepare for changes in future, to make the experience wide, to support internal promotions, to develop employees’ work into flexible one in order to have the opportunity to make some changes when business environment changes rapidly. However, there are some benefits for only individuals: raising the level of self-confidence and believing in own forces, responsibility and promotion level increasing, brining a feeling of achievement and individual satisfaction, opening of career opportunities. However, it is known that FDI in China has five forms of it. They are such: foreign sharing-holding enterprises (or it can be called SH), also a wholly foreign-owned enterprise (it is known as WFOs) that is going to be discussed later in the work, moreover, equity joint ventures (or simply EJVs), cooperative operation enterprises or contractual joint ventures (or just CJVs), at last, joint exploration (JE). custom term paper
I think it will be appropriately to notice that management development usually has some requirements: an interchange of training on the job and out of it. We can name four main organizational benefits. They are such: taking preferences of the inequality in the labor market; increasing to maximum potential of employees; managing across borders and cultures; creating and rendering business opportunities and improving creativity. To acquire new skills and knowledge employees should have practice and theory combination. In conclusion, a good unit of personality and work in team is significant and important mostly for all workplaces. Moreover, the employee discipline should be always under control. With this nuance, Chinese company’s employees do not have any problems. That led them to a rising of rate of FDI (from $19 billion 2 decades ago to $300 billion in recent years).
2.2.1.2 Representative Offices
Talking about representative offices, should be mentioned that China is one of the most popular and successful countries to have a representative office in. As it is noticed in the one source, a representative office is an office established by a company to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted. Representative offices are generally easier to establish than a branch or subsidiary, as they are not used for actual “business” (e.g. sales) and therefore there is less incentive for them to be regulated (<http://www.export.gov/china/exporting_to_china/RepOffice.pdf>, pg 1). To make explaining simpler let me name Representative Office as just RO. A representative office is a good opportunity to have benefits from it. Therefore, China is worth of take its figure onto the item.
In order to establish itself each foreign organization should have in the country a representation office
(or simply RO). Further still, to have an RO in China any foreign firm have to have some procedure, which is noticed in the official documents and Chinese legacy. Moreover, a representative office is seemed to be not a divided legal entity, but a part of its relative country. Representative office’s inexpensiveness is RO’s benefit, including the simple process and short timeframe of it. It is obvious that representative office is a kind of liaison between both companies: parent and local. Definitely, representative office is not only useful and helpful, but also necessary for foreign investment when administrative decision makes and concerns the business establishment, as well. It is obvious that the examples can be such: the employees from Chinese staff, having an account in the bank in the firm’s name, office/workplace renting and others.