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1、Research Proposal 6Research Proposal of Multinational Corporation under Cultural Shock in ChinaFirstName LastNameCourse TitleInstructors NameDateResearch Proposal of Multinational Corporation under Cultural Shock in China1. IntroductionThis proposal outlines plans for research that I am considering
2、undertaking for enterprise management and academic writing skills. My proposed research is in enterprise management subject and focuses on how multinational corporations operate successfully in doing international business in China, especially under such huge cultural shock situation.With a high deg
3、ree of liberalization of trade and finance, international investment is gradually opening up and it also begins the process of liberalization. Under world economic development becoming imbalance in the distribution of resources existing, so transportation, communications, and technology are still an
4、 important role in the process of globalization and regionalization. Normally, what each country in the world affects each other the most is investment. Economic globalization, regional economic and financial, and investment liberalization act very important roles in economic at present. In this pap
5、er, Toyota, for example, is chosen to discuss the challenges faced by multinational enterprises in China, and multinational enterprises investment behavior in China will be discussed as well. Toyota should strengthen enterprises by paying more attention to the localization of product development in
6、China, and perform practical actions to get close to Chinese people in order to win more market in China.2. Summary of Relevant LiteratureWith reform and open to the outside world, one of the Chinese economic reforms, turned into actual stage though Chinas economic development, more and more multina
7、tional corporation has thrown their attention into this huge market. China has such a sufficient market that low cost is not a argumentative fact. However, being success in China is not an easy task.In the 21st century, multinational enterprises control more than half of the world production, trade,
8、 investment and technology. According to the one report, it showed that 90 percent of the worlds multinational enterprises in the following three years have the ideas of developing their business in China. Multinational corporations are also aware of the risks faced by their investments. However, th
9、is time is not perfect. The market will bring many challenges, especially from legal, financing, restructuring and human resources. The report also shows that the Chinese legal environment is obstacles of the group on the process of world economic becoming integration. Nevertheless, fraud and copyri
10、ght infringement is the greatest risk, which has entered the Chinese market and those who have not yet entered the Chinese market. Some of sensitive sectors such as telecommunications, financial industry are very concerned about the provisions of the trade management system. Multinational enterprise
11、s who want to enter China will re-evaluate the organizational structure of the business model. Some companies are even going to the sell shares to local Chinese investors to cash in the shares of investment. (Markusen, 1991)In 1978, Toyota is the first company in China to play a classic car advertis
12、ing slogan. With bright phrase slogan, Toyota has greatly exaggerated its own brand mark engraved in peoples minds. However, the attitude of arrogant finally let it loss a lot. Toyota had finally bowed its head, it gave up the principle of sell products do not sell technology. Unfortunately, the pub
13、lic think is very speculative, non-cooperation the sincerity of the act, which left very bad memories to the Chinese public as well as ordinary people.On the next 20 years, Toyota relies on imported cars business in the Chinese market and sells the parts with great benefits. However on the local pro
14、duction with inaction and delay, it eventually led to its competitors far behind.3. Research problemIn this section, I will concern on the impact of foreign trade in developing countries. Foreign Direct Investment and private credit is use to supplement the shortage of imported capital in developing
15、 countries. Multinational capital flows, accelerated changes in the structure of foreign trade goods in developing countries. After the war, the developing countries to introduce foreign capital, technology and management experience vigorously develop the export processing industry, certain industri
16、al sectors to achieve a technical jump, to promote changes in the structure of foreign trade goods and national economic development. Multinational capital flows, and promotes the formation and development of the pattern of industrialization in developing countries and compatible with the pattern of
17、 trade. (Dunning,1985 ) After the war, the developing countries to use foreign investment, especially investment by multinationals, the implementation of the industrialization model and adapt to the pattern of trade can be divided into: the export of primary products of industrialization, import sub
18、stitution industrialization and manufactured goods substitution industrialization three stage. Import-substitution industrialization refers to a State to take the tariffs, quantitative import restrictions and foreign exchange controls and strict import restrictions, measures to restrict some of the
19、important industrial imports, nurture and protect their own industrial sector development policies. To implement this policy aims to use the domestic production of industrial products instead of imported products, to reduce its dependence on foreign markets, promote the development of national indus
20、try. (J. H. Dunning, 1995) Export substitution industrialization refers to a State to take measures to promote the development of export-oriented industries, instead of the traditional exports of primary products exports of manufactured goods and semi-manufactures, and promote the diversification an
21、d development of export products in order to increase foreign exchange earnings, and promote the establishment of the industrial system and sustained economic growth.For the international trade and the growth of the world economy, overseas investments of multinational enterprises in the world econom
22、y play a greater role than the countrys trade. In fact, multinational enterprises have become the contemporary international economy, science and technology and international trade, the most active and influential force. These force multinational corporations to invest in general showed an upward tr
23、end will be enhanced.About the impact of foreign trade in developed countries, development of transnational corporations played a great role in promoting foreign trade of the developed countries after the war. These effects are manifested in the products of the developed countries through production
24、 and sales of foreign direct investment in the host country, thereby bypassing the trade barriers, improve the competitiveness of its products; from the perspective of raw materials, energy, less developed countries the dependence of developing countries; products of developed countries to more succ
25、essfully access and utilization by the host countrys foreign trade channels and easy access to business intelligence information.4. Methodology and MethodsTo investigate, I will search for papers about this topic and seek for a case study, such as Toyota China, as an example. Moreover, I will organi
26、ze opening group for further discussion with other people who are interested in this subject.5. Detailed Research DesignIn this proposal, it will develop as follow: Theory and Analysis of the Multinational Enterprises, Changing Socioeconomic Landscape, Main Feature of Multinational Enterprises, Oper
27、ational Characteristics, etc.6. ConclusionThere is no doubt that the future of Toyota China will have more power, more responsibility, more features. Power and resources will not be in vain, the use of power and resources should have a strong enough potential to further wisdom wining in China for To
28、yota.In the future, Toyota will further strengthen the reform of its localization in China. This will help Toyota to achieve self-management, and independent decision-making, which is to be implemented more quickly. On the other hand, the better absorption comes out, the better adoption of the insig
29、hts of local talent. New recruits and the appointment will promote local Chinese staff play duties including the company decision-making. It can improve the degree of localization of middle and senior management. In addition, in order to be able to develop more to meet market demands in China, Chine
30、se consumers love the product. Customer satisfaction, as a pursuit of the goal of every employee, can include the dealership stand in the customer perspective. More in the future humbly listen to the views of the customer, and these views are fully reflected in the product development, manufacturing
31、, sales and after-sales service Toyota all aspects of the cause of it, thus forming a virtuous cycle of continuous improvement, continuous improvement. On the other hand, the customer vehicles may be a bad situation in order to be able to first at the scene of the vehicle to confirm. It makes Toyota
32、s business in China achieving harmonious development of society and solid development in China.Toyota should strengthen enterprises by paying more attention to the localization of product development in China, and perform practical actions to get close to Chinese people in order to win more market i
33、n China.ReferencesMarkusen J. R., The Theory of the Multinational Enterprise: a Common AnalysisFramework , Westview Press, 1991.J. H. Dunning, Reappraising the Eclectic Paradigm in the Age of Alliance Capitalism,Journal of International Business Studies,1995,26(3).Dunning J. H and Rugman A. M“The Influence of Hymers Dissertation on the Theory ofFDI”American Economic Review Vol.75.1985, P228-232.