International Business

Executive Summary

A concept taken after Alvin Toffler following his book Future Shock and a later sequel The Third Wave, China’s expansion strategy called ‘Four Modernizations’ was first introduced by Deng Xiaoping in 1978. The Third Wave was eventually translated into Mandarin and became mandatory reading for the mainland Chinese.

Formerly a communist country until the demise of Chairman Mao, it was only in 1980 that Deng revolutionized China which led to drastic economic expansion plans and political reforms. Since then, China is one of the fastest growing economies throughout the history and luring foreign businesses onto its shores in the process. Business opportunities are abound in the forms of foreign direct investments (FDI) and equity joint ventures.

This assignment would seek to study how foreign companies, Africa countries in particular find doing business in China; the trials and tribulations encountered, likelihood of the problems being faced and solutions, and especially the China’s government readiness and flexibility in creating conducive environment for foreign investors.

In essence, bilateral trade and investment between Africa and China has been growing since the start of their diplomatic relations in 1998.

An in-depth discussion would also be provided on the cultures, religion, work ethics, and the differences in values and beliefs of both people in China and Africa. It would also demonstrate the importance of understanding and adapting to the local cultures in which we seek to conduct our business in an effort to build and nurture better working relationships.

Table of Contents

Executive Summary

Introduction 4

1.0 Li, Mianzi & guanxi 5

1.1 Feng Shui 6

1.2 Corruption Level in the Government

2.0 Hofstede’s Dimension of Culture 7

2.1...