Future Investment Opportunity In China and current Labour Condition Essay Example

low production costs. However, it is crucial to assess how changes in labor status, strikes, and increasing labor costs could impact China's competitiveness. If other countries become more appealing destinations for multinational companies facing similar issues, maintaining China's competitive edge may become challenging. Additionally, given the interconnected nature of today's economic landscape, when one country experiences challenges in the labor market or strikes, it will inevitably affect others. Considering China's significant import-export trade relations, it is particularly susceptible to such labor market challenges. The top exporting states from China include United Province ($162.9,+30%), Hong Kong ($124.5,+23%), Japan ($84,+14%), South Korea ($35.1,+26%), and Germany ($32.5,+37%). Conversely, the leading importing states from China are Japan ($100.5,+9%), South Korea ($76.8 ,+23%), Taiwan ($74.7,+15%), United States ($48.7,+9%) and Germany($30 .7,+1%).It is crucial for key states to effectively recover from the recession by smoothly carrying out their economic activities. However, if labor market issues in China worsen and disrupt its economic system, it will have negative effects on multinational corporations (MNCs) as well as create instability in other countries' exports and imports. To avoid major disappointments during this recovery period, countries should regularly review their policies and procedures. The dominance of certain jobs in China might lead to the removal of import barriers and cheap labor, thus increasing the overall cost of goods. Consequently, this could result in lower exports and reduced profits for MNCs, compelling them to seek more profitable opportunities elsewhere. It is essential for MNCs and government officials to address the underlying causes of this issue and find reasonable short-term or long-term solutions while adopting a forward-thinking approach. Regarding investments, one needs to question whether China still

remains a worthwhile option for investment. Factors such as the current investment ratio and what influences this ratio must be taken into consideration. If China is no longer as appealing for investment, it becomes important to ascertain the reasons behind this change. One of the main factors that initially attracted MNCs to invest in China was its cheap labor; therefore, it is necessary to determine if this factor still persists today.The research aims to assess if China's advancements have increased its market strength for MNCs, examine labor laws and rights for Chinese workers, and understand how companies have improved labor conditions. It also seeks to explore potential alternatives, assess China's advantage over rival countries like India and other BRIC nations, and address labor concerns to maintain attractiveness for MNCs. The primary focus is on labor issues as a crucial factor in maintaining China's position as a preferred investment destination. The purpose of the research is to investigate causes of issues in China and find solutions while improving workforce skills and fostering better relationships between MNCs, the government, and the people.In order to enhance labor conditions in China, initiatives such as improving working conditions, reviewing labor laws, and implementing safety procedures should be explored. These efforts will help develop a multi-skilled labor force that adds value to Chinese products. It is crucial for research to identify strategies for training and developing this workforce so they become more valuable for multinational companies (MNCs). Skilled and efficient workers are preferred by investors, especially if they come at a lower or no cost. Government policies need to be regularly reviewed to maintain a positive impact on MNCs and ensure

a competitive edge. The focus of this project is the thorough analysis of the Chinese economy, excluding countries competing with China and external factors that influence it extensively. Attention will primarily be given to labor factors, policies, and procedures. Additionally, studying how certain MNCs operate in China and the labor conditions they encounter is a key aspect of this analysis.Successful solutions implemented by companies to address labor conditions will be assessed. The research process for this study will follow a step-by-step approach as shown in the accompanying image. It begins with an introduction section that provides an overview of the topic, rationale, and purpose of the study. A comprehensive literature review will then be conducted to delve into specific issues and related theories. The methodology section considers various approaches to data collection methods and data analysis processes. Next, empirical data from multinational corporations (MNCs) facing similar problems will be examined alongside identifying causes using relevant examples and theories. This analysis phase aims to provide a thorough understanding through extensive examination utilizing both examples and theories. Ultimately, decision-making based on deductions drawn from the analysis phase concludes this research endeavor. Finally, recommendations will be made for each situation, offering short-term and long-term solutions for MNCs to consider.

The literature review focuses on China's achievements in recent decades due to its large population. However, in order to compete in the BRIC environment, China needs to increase its workforce. According to ancient Chinese philosopher Guanzi (c.645BC), planning for a year involves planting riceAccording to an Erasmus University Master Thesis, planning for a decade involves planting trees, but when planning for life, training and educating people is crucial. China has

approximately $2,648,300 million in foreign reserves (source: http://www.forexhedgingstrategy.net) and should prioritize investing in its people's well-being and improving the working environment. However, this is currently not happening. Additionally, due to the one-child policy implemented three decades ago, Chinese companies are now dealing with an aging labor force. China recently announced that the one-child policy will continue for the next 20 years which may require a reassessment of this policy. As a communist state, the government has a greater responsibility to care for its citizens. However, encouraging more children through policies would lead to increased societal pressures and financial burdens on an unprepared Chinese government.

It is worth noting that the province of HENAN in China has reached a significant population milestone of 100 million people. This achievement is similar in size to that of the Philippines and highlights the potential for an even larger population of 33 million people without specific policies in place. According to www.guardian.co.uk, China's projected population is estimated to reach 1.39 billion individuals by 2015.In addition to the challenge of population growth, multinational corporations (MNCs) in China also face regular work stoppages by their laborers. These stoppages result in increased costs and delays for the companies. The MNCs have not invested in improving working conditions, leading to unattractive rewards compared to their profits. Additionally, the provided fringe benefits are not appealing.

According to a source from Peoples Daily, there were 37 work stoppages between May 25th and July 12th in GUANGDONG alone. Renowned MNCs like HONDA, TOYOTA, and FOXCONN have all experienced multiple work stoppages. Experts caution that China needs to transition from its current manufacturing model due to societal changes and a

decrease in cheap labor.

The text highlights the need for improved working conditions and higher quality merchandise as China moves from the fabricating sector to the service sector. Other companies are also striving to improve their conditions following recent work stoppages at major multinational companies.

To address this issue, authorities have implemented mandatory exercise for workers from 10am to 3pm. During this time, workers only need to engage in eight minutes of exercise while listening to music through wireless devices.

China's migrant workers desire better working environments and fair rewards.
The presence of migrant workers in China not only provides multinational companies with affordable labor, but also plays a significant role in boosting the country's economy. However, these workers face challenges in their work environments due to policies like the hukou system, which discourage them from educating their children in the cities where they work. Despite this, some companies have implemented changes to improve working conditions and rewards, making themselves more attractive to these workers. The increasing demand for change in this area is evident. To thoroughly examine this topic, we will explore various relevant theories, models, and concepts related to investment purposes and labor management. This includes considering investment theories such as Exceed down investing theory, Bottom up theory, Diversification theory, Efficient market theory, Life cycle investing theory,and Selling theory. Additionally, motivation theories such as Maslow's hierarchy of needs theory,Potter's motivation-hygiene theory,and Lawler's expectancy theory will be explored to enhance productivity and value within people's management and performance.To establish standards that can help organizations create better environments,Kolb's learning cycle,Senge's five learning disciplines,and the intrinsic and extrinsic aspects of rewarding systems will be studied.Furthermore,the active participation of the Chinese

government in improving people's lives is crucial for success.The text emphasizes the importance of conducting a thorough analysis of research methods to ensure unbiased outcomes focused on suitable solutions rather than personal preferences. It highlights that various processes and methods can be used to obtain results and provide decision-makers with clearer insights into the situation. Specifically, for this particular research, two effective and relevant methods will be utilized: Ethnography and descriptive anthropology. The first method involves actively observing the lives of individuals who have worked in China, particularly those with experience in multinational corporations (MNCs), allowing for the collection of concrete firsthand experiences. Additionally, a descriptive anthropology method will be employed by analyzing docudramas about China and engaging in both informal and formal conversations with individuals experienced in China, aiming to closely examine China's conditions. This approach helps understand employees' behavior and their interpretation of MNCs' environment and government policies. The use of ethnographic surveys provides valuable insights into people's beliefs and cultural systems from both an insider (emic) perspective as well as an outsider (etic) perspective. Overall, this process is characterized by openness, flexibility, and creativity, enabling a comprehensive understanding.Utilizing this method enables obtaining valuable insights on various topics, including job design, employee risks in multinational corporations, company regulations, ethical standards of colleagues and society, recruitment and rewards systems, employee perspectives on training and compensation standards, and how companies handle new situations. Developing a culture that aligns with the organization's goals and benefits employees is crucial due to the diverse cultures present within organizations and societies. Surveys are another research method used to gain clarity on these aspects. Surveys are divided into questionnaires and

interviews. Questionnaires consist of written formats where interconnected questions provide relevant information. Different question formats like multiple choice or fill in the blank ensure focusing on the topic for a clear conclusion. This text emphasizes the importance of understanding problems clearly and having effective policies when addressing them. When conducting interviews, it is important to create an informal environment that encourages openness. Gathering relevant information is crucial even if some irrelevant details are included. Interviews can be conducted individually or in groups; however, interviewees must have relevant experience.In addition, insights into these matters can be gained from data provided by research companies and resources related to the Chinese economy. The conversion of information into numerical format aids analysis through interviews and questionnaires. It is crucial to evaluate the collected information in terms of relevance when scaling it for analysis purposes. Conducting interviews in an ethical and respectful manner is vital as individuals contribute valuable information. Respect for their privacy and high regard for their input are important aspects to consider. To ensure solutions that yield results, findings should be accurately presented without exaggeration, thus basing decisions on factual information. Prioritizing interviews over creating a questionnaire leads to more detailed and useful data, resulting in more constructive outcomes. The obtained results will then be analyzed using relevant theories mentioned in this thesis.
While these methods facilitate labor condition analysis, it is necessary to examine current investment policies specifically targeted at multinational companies (MNCs). Investment decisions are influenced by key factors such as capital availability, competitiveness, regulatory environment, stability, local market and business climate as well as openness to regional and international trade. In this analysis, we will

focus on three of these factors: the business climate, stability, and regulatory environment.We will analyze the necessary changes in different countries and provide recommendations accordingly. Additionally, we will examine the challenges faced by TOYOTA, HONDA, and FOXCONN as they understand their resolution approaches and explore potential government support for multinational corporations. Finally, our comprehensive format section will present our analysis and conclusions.

Graduation Timetable:

Agenda Tasks and details:
- Literature Search: initiated subject search on 13 July 2010.
- After consulting with a coach, I have decided to focus on China's future investment opportunities and the labor sector.
- The literature review for this topic was finalized on July 27, 2010.
- The review process began on July 28, 2010 and concluded on August 3, 2010.
- Due to other assignments and exams, the data collection had to be divided into two intervals - from August 10-15, 2010 and then from August 30 to September 20, 2010.
- The information for this research was gathered from various sources such as the library, online sources, and newspapers.
- Originally planned for November 1st, the presentation date had to be moved up due to an upcoming wedding. However, all slides have been completed and cover all necessary points.
- Starting from my home country in December, surveys will be conducted among individuals with experience in China. This survey duration is set from December 1st to December4th ,2010.
-Analyzing these surveys will not take long since they are well structured;The composition and drafting process for my studies will take place from December 6th to December 26th, 2022. The initial gathering of information and analysis will occur between December 6th and December 10th. Then, I will begin

creating a first draft from December 10th to December 18th with thorough amendments and revisions to ensure a cohesive document. The concluding drafting stage will be completed between December 19th and December 22nd, focusing on the presentation aspect. To finalize the document, two days are allocated from December 23rd to December 24th, with special attention given to fulfilling binding requirements. Lastly, I will review everything one final time before submission on December 30th in hopes of meeting all standards.