Micro & Macro Economics

1841 Words8 Pages
Phase Five Individual Project
Brittany Crowe
Colorado Technical University
MGM336-1502B-01 Management in International Business
Professor Asefaw Indrias
June 21, 2015

The macro environment in the Communist country of China is represented by a socialist system with Capitalistic characteristics unique to China. Despite having many similarities to an authentic Capitalistic system, China is placated upon a macro environment wherein the Communist party and its policies deeply impact all aspects of the economy and economic development. Different industries are present within the country including the Shareholder System Enterprise, the State Owned and Control Enterprise, and Foreign investment enterprise, which is what our company would
…show more content…
The only leadership that would work in China is authoritarian leadership style as the country is based upon strict hierarchical management with a strong deference to authority. Therefore, leaders are absolutely respected and can expect no resistance or challenges to their authority, which is how the country’s political system is also ran. In reference to politics, the country is Communist, the environment has been ravaged by pollution, and the culture is one wherein businesses’ must respect the authority of the state above all else. The operation should be staffed with a hierarchical system that champions authority.
When doing business in China establishing a contact to act as an intermediary is important. This brings with it multiple benefits. They can act as a reference, be your interpreter and navigate you through the bureaucracy, legal system and local business networks (Kwintessential, 2015). The Chinese don't like doing business with companies they don't know, so working through an intermediary is crucial. This could be an individual or an organization who can make a formal introduction and vouch for the reliability of our company.
In general, the Chinese are a collective society with a need for group affiliation, whether to their family, school, work group, or country. In order to maintain a sense of harmony, they will act with decorum at all times and will
Get Access