Internation Business

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Closing Case: DMG-Shanghai-International Business chapter 3

1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China?

Because China is a big country for mechanism. By establishing connections in relationships wouldhelp do a better job and mechanism; and the society of China lacks a strong rule-based legal tradition,thus guanxi and guangxiwang is becoming a necessary and important mechanism for building long-term business relationships and getting business done in China successfully.

2. What does the experience of DMG tell us about the way things work in China? What would likelyhappen to a business that obeyed all the rules and regulations, rather than trying to find a way aroundthem as Dan Mintz apparently does?

The experience of DMG shows us that culture is an important thing in China. Guanxi, what meansrelationships or connections and guanxiwang, what means relationships network are a very important piece of there culture. They are also crucial to whom who are trying to start a successful business inChina.Although you hold some obligations towards your superiors, they also have to reward you withsomething. This obligations helps them to get a good reputation and support for the future. In Chinawhen you have these relationships, it will help you work around the law and it can open doors for your  business that normally can not be opened. It also is very useful when you have a business that deliversa good job, they bring the message over what gives you the opportunity to get good assignments frommajor companies.So a business in China without the relationships network is doomed to fail, because if you can’twork around the law and have doors opened for you it is almost impossible to get a successful business.companies.

3. What are the ethical issues that might arise when drawing upon...