Challenges Face by Malaysian Companies Investing in China Essay Example
INTRODUCTION
Attention Grabber Most of us will think that China is an ideal place to expand business due to its fast growing economy and a big potential market. Do you know that investing in China also meaning you have to deal with some tough problems? II. Reveal Topic Today, I would like to talk about the challenges face by Malaysian companies investing in China. Relevance Statement Some of the Malaysia companies investing in China are Unisem Co.
Ltd, Parkson Retail Group Ltd and Hytex Integrated Bhd. They realize that China is a country full of opportunity for business growth because of its fast growing economy and it has 1. 3 billion people and they are increasingly entering the middle class meaning they will have more money in their pocket. In fact, the purchasing power of China ranked second in the world just behind U. S. So much for the introduction, now let
...me show you the challenges faced by these companies. Preview of Main Points Some of the challenges faced by Malaysian companies are:
- Facing local protectionism
- Intellectual property violation
- Dealing with corruption [ Let me start with the first challenge facing local protectionism. ]
BODY
Facing Local Protectionism A. Define protectionism i. A practice of protecting domestic goods and service industries from foreign competition. ii. Domestic producers are not exposed to foreign competition, and can therefore keep prices high. B. China market are heavily regulated i. It is like a bureaucratic maze for foreign investor ii.
To hamstring foreign investor [ I will move on to the second issue which is the intellectual property violation. ] Intellectual property violation A. Define intellectual property i. Referring to a number o
distinct types of creations of the mind for which a set of exclusive rights are recognized. ii. Common type including copyrights, trademarks, patents, industrial design rights and trade secrets. B. Effect of intellectual property violation i. Steal the company innovation result in loss in sales.
Cheapening the company product by creating a lot of low quality replica. [ Now, let me tell you about the final challenge. ] Deal with corruption A. Explain the corruption in China i. In the 2010 Corruption Perception Index, China score 3. 5 out of 10 points and located at 78 among 178 countries. ii. Including bribery and providing clients with expensive trips abroad, lavish meals and red envelopes stuffed with money. B. Impact to Malaysia companies i. Malaysia companies may find it hard to adapt. ii.
Business may be stolen by competitors through bribery. [ Lastly, let me summarize my presentation. ]
CONCLUSION
In conclusion, challenges faced by Malaysian companies investing in China are:
- (a) China local protectionism
- (b) Intellectual property violation
- (c) Corruption
REFERENCES
- Transparency International, 2010.
- "Corruption Perceptions Index" , view 28 May 2011, from Transparency International.
- The Prism Group, 2010, “Why expand a business in China? ”, view 28 May 2011, from
- <http://www. startupoverseas. co. uk/expanding-a-business-in-china>.
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