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  • Closing Case DMG Shanghai

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    Bijoy Salahuddin
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    1. Guanxi and guanxiwang are still essential for businesses to operate in China as they allow connections to be made to get things done and access resources. 2. A business committed to high ethical standards would struggle to operate in China as guanxiwang involves exchanging favors, which could be seen as bribery from a Western perspective. 3. While guanxiwang is accepted practice in China, there are risks if the relationships sour as friends can quickly disappear without fulfilling obligations.

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    Closing Case DMG Shanghai

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    1. Guanxi and guanxiwang are still essential for businesses to operate in China as they allow connections to be made to get things done and access resources. 2. A business committed to high ethical standards would struggle to operate in China as guanxiwang involves exchanging favors, which could be seen as bribery from a Western perspective. 3. While guanxiwang is accepted practice in China, there are risks if the relationships sour as friends can quickly disappear without fulfilling obligations.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca DOC, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    401 vizualizări1 pagină

    Closing Case DMG Shanghai

    Încărcat de

    Bijoy Salahuddin
    1. Guanxi and guanxiwang are still essential for businesses to operate in China as they allow connections to be made to get things done and access resources. 2. A business committed to high ethical standards would struggle to operate in China as guanxiwang involves exchanging favors, which could be seen as bribery from a Western perspective. 3. While guanxiwang is accepted practice in China, there are risks if the relationships sour as friends can quickly disappear without fulfilling obligations.

    Drepturi de autor:

    Attribution Non-Commercial (BY-NC)
    Descărcați ca DOC, PDF, TXT sau citiți online pe Scribd
    Indicator pentru conținut neadecvat
    din 1

    (Closing Case) DMG Shanghai Page:117 1. Why do you think that it is so important to ulti!

    ate guanxi and guanxiwangin China" #ns: $here are so many la%s that %ithout guanxi and guanxiwang nothing %ould get done and a &usiness %ould go out o' &usiness. $he onne tions that a &usinessman makes an either make or &reak a deal. # deal gone %ell %ill gi!e that &usinessman prestige and allo% 'or him easy a ess to other resour es in the 'uture. (. What does the e)perien e o' DMG tell us a&out the %ay things %ork in China" What %ould likely happen to a &usiness that o&eyed all the rules and regulations* rather than trying to 'ind a %ay around them as Dan Mint+ apparently does"

    #ns: China is a ountry 'illed %ith people %ho %ill not do anything 'or 'ree. $here is al%ays a ost. $his is alled &ri&ery in the ,nited States and is a rime under &ri&ery la% as %ell as %hite- ollar la%. $he &usiness that tried to 'ollo% all o' the rules %ould ne!er get any &usiness. .. What are the ethi al issues that might arise %hen dra%ing upon guanxiwang to get things done in China" What does this suggest a&out the limits o' using guanxiwang 'or a Western &usiness ommitted to high ethi al standards"

    #ns: $he ethi al issue is also a la% in the ,nited States* &ri&ery. $he /uestion is should %e do &usiness %ith people %ho e)pe t 'a!ors in turn 'or a 'a!or" What i' that is the only %ay to do &usiness" $hese are hard /uestions. # Western &usiness ould ne!er 'ollo% through %ith guanxiwang i' they %ere ommitted to high ethi al standards. $hey %ould ha!e to go against their &elie's to %ork in China. 0. What is happening today" 1s Shanghai di''erent or the same" Ans: Guanxi and guanxiwang is still the %ay &usinesses go a&out their &usiness. 1t is the %ay it %orks and e!eryone is e)pe ted to gi!e &a k %hen gi!en to. 1t is not &ri&ery in China as it is in the ,nited States. $his is a /uote on guanxi: 2eep in mind that 3Guan)i4 an take on many 'orms. 1t does not ha!e to &e &ased on money. 1t is ompletely legal in their ulture and not regarded as &ri&ery in any %ay. So* there is no need to 'eel un om'orta&le a&out it. $rust%orthiness o' &oth the ompany and indi!idual is an important omponent. 5ollo%ing through on promises is a good indi ation o' this. $reating someone %ith ourtesy %hile others treat him or her un'airly is another aspe t. 5re/uent onta t 'osters 'riendship as %ell. Chinese 'eel o&ligated to do &usiness %ith their 'riends 'irst. $here are risks %ith this system* as %ell. When something goes %rong* the relationships are hallenged* and 'riendships /ui kly disappear. 3Guan)i4 an also &e !ery one-sided. When 3Guan)i4 is in!ol!ed* there is a risk o' o&taining an in!oi e o' t%i e the amount that you &argained 'or.

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