Cultural, Economic, Political and Industrial Relation Factors to Consider a Chinese Steel Factory Must Consider to Invest in Britain or Sweden

1731 Words Jun 21st, 2018 7 Pages
China, over the last 30 years or so has achieved extraordinary economic growth, leading to gradual market liberation. Despite this China remains a one nation state with HR practices steeped in Confucianism, however The Chinese government is committed to supporting outward investment for companies looking to expand overseas. (IBM, 2006). There are many influences to consider when deciding which country to invest in, this essay will consider the cultural, economic, political, and industrial relation factors a Chinese steel factory must consider in deciding whether to open a new production facility in Britain or Sweden. After considering these issues, based on the evidence the essay will conclude with a recommendation on which country is …show more content…
(Hayter, 2011)Indeed workers have had very few rights, although China in response to adverse publicity have introduced some minimum labour laws (Hollingshead, 2010)
The Scandinavian approach embraced by Sweden is strongly Pluralist (Hollingshead, 2010) which guarantees freedom of association and is backed by the Swedish constitution. Additionally collective bargaining agreements play a major role in the employment relationship, with trade unions enjoying a very strong voice in Sweden (Xpert HR, 2014). In comparison to the UK, Sweden takes its workers’ rights very seriously and many employee benefits are legally enforceable, this along with laws protecting the rights of trade union members provide significant security and benefits for workers (Work.Sweden.Se, 2014). Additionally Sweden has extremely centralised and organised trade Union organisations with a particularly high level of union density, its highly egalitarian society having low levels of economic inequality but with high levels of state expenditure. (Upchurch et al, 2009). Mutual respect is the norm between trade unions and employers and with close links with political parties, however rigid labour laws can inhibit Foreign Investment. (State.Gov, 2012)
On the other hand, the UK adopts a voluntarist approach to employment regulation and avoids direct intervention in employment relations, unlike Sweden, trade unions no longer
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