International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Solution man

The one country, two systems (communism and capitalism) balance is delicate, and foreign businesses are often caught in the middle.
Many MNCs find it very difficult to do business in and with China.
Concerns over intellectual property and policies that favor domestic companies over foreign ones make China a complicated and high-risk venture.
Even so, MNCs know that China and its 1.4 billion people will be a major world market and they must have a presence there.
Trade relations between China and developed countries and regions, such as the United States and the EU, remain tense.
The Trump administration implemented tariffs on certain Chinese imports and China retaliated by enacting tariffs on a variety of U.S. goods.
Another contentious issue is the value of its currency, the renminbi (or yuan) which some argue is kept artificially low, giving China an unfair advantage in selling its exports.
In addition, China’s policy toward foreign investors continues to be fluid and sometimes unpredictable.
Other Emerging Markets of Asia
In addition to Japan and China, there are a number of other important economies in the region, including South Korea, Hong Kong, Singapore, and Taiwan.
Together, the countries of the ASEAN bloc are fueling growth and development in the region.
In South Korea, the major conglomerates, called chaebols, include such internationally known firms as Samsung, Hyundai, and the LG Group.
Many key managers attended Western universities and learned the Western culture, customs, and language – now using this information to formulate competitive international strategies for their firms.
Bordering southeast China and now part of the People’s Republic of China (PRC), Hong Kong has been the headquarters for some of the most successful multinational operations is Asia.
There is still uncertainty about the future and the role the Chinese government intends to play in local governance.
Singapore is a major success story. Its solid foundation leaves only the question of how to continue expanding in the face of increasing international competition.
Singapore has emerged as an urban planner’s ideal model and the leader and financial center of Southeast Asia.
Taiwan has progressed from a labor-intensive economy to one dominated by more technologically sophisticated industries, including banking, electricity generation, petroleum refining, and computers.
Its economy, boosted by increasing foreign trade, continues to grow steadily.
Besides South Korea, Singapore, and Taiwan, other countries of Southeast Asia are also becoming dynamic platforms for growth and development.
Thailand, Malaysia, Indonesia, and now Vietnam have developed economically with a relatively large population base and inexpensive labor despite the lack of considerable natural resources.
India
With a population of about 1.3 billion and growing, India has traditionally had more than its share of political and economic problems.
India’s GDP growth rate is among the highest in the world.
For a number of reasons, India is attractive to multinationals, especially to U.S. and British firms as many Indian people speak English, are well educated, and known for advanced IT expertise.
Developing Economies on the Verge
Around the world there are many economies considered developing, some on the verge of emerging as impressive contributors to global growth and development.
South America
Countries in South America have had difficult economic problems.
They have accumulated heavy foreign debt and experience severe inflation.
Brazil has attracted considerable foreign investment, with foreign companies drawn to opportunities created by Brazil’s privatization of power, telecommunications, and other infrastructure sectors.
Until recently, Brazil benefited from one of the most stable governments in Latin America, securing their place as an economic leader of South America.
More recently, Brazil has faced alternating periods of economic progress and setbacks – including impeachment of the President in 2016.
Given Brazil’s large, well-educated population, ample natural resources, existing industrial base, and strategic geographic position, longer-term prospects are still positive.
See International Management in Action: Brazilian Economic Reform and Recent Challenges, summarized at the end of the outline.
Chile’s market-based economic growth has fluctuated between 2 and 6 percent since the early 2000s, one of the best and most stable performances in Latin America.
Chile attracts foreign direct investment, mainly in gas, water, electricity, and mining and continues to participate in globalization by engaging in further trade agreements.
Argentina has one of the strongest economies overall with abundant natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base;