China 's Annual Business Climate

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A large number of international companies started establishing their business in China due to its attraction as a low-cost production base and the growing importance of the Chinese domestic market to the world economy, and its attraction as a low-cost production base. China gradually opened its consumer market of over 1.3 billion people to the rest of the world since 1990s. It is true that China represents a huge market for international that where these opportunities lie and how to access them, as it can be extremely challenging (Hexter and Woetzel, 2007). There are many retail firms such as Procter & Gamble, Unilever, Metro, Tesco, Walmart, and Carrefour which are trying to grasp those opportunities. According to a China annual business climate survey, 2016 (American Chamber of Commerce in People’s Republic of China), 71% of the member firms stated that their businesses was running profitable. Report by Kearney (2013), lists China as the topmost desirable developing retail market in the world and predicted that in coming years it will also be the largest world market for luxury goods. Despite the the rapidly growing economy of China many international companies are struggling for success such as Tesco, Walmart, best Buy, Groupon, google and many more (Hingley, 2008).
In this article, we will analyze the challenges faced by American multinational company, Walmart, in the Chinese market with respect to cross cultural issues.

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