Advertising & Marketing

Invest In China – Establishing A Business

Business Three primary investment forms are .monly used by foreign .panies to establish a permanent presence in China — the Sino-foreign Joint Venture, the Wholly Foreign Owned Enterprise, and the Representative Office. Sino-Foreign Joint Ventures This investment form requires the foreign .pany to team up with a Chinese partner. As Chinese .panies are typically short on money (particularly hard currency), the foreign partner usually provides the bulk of the funding while the Chinese partner supplies land use rights, deals with the Chinese bureaucracy, and helps recruit employees for the venture. Sino-foreign Joint Ventures can be divided into two types — (1) Equity Joint Ventures, and (2) Cooperative Joint Ventures (also known as Contractual Joint Ventures). In an Equity Joint Venture, the parties are obligated to divide their respective contributions to the joint venture (whether in cash or in kind) into discrete ratios, which ratios must be strictly adhered to when apportioning profits both during the venture’s operation and after liquidation. In a Cooperative Joint Venture the parties need not calculate a contribution ratio for each partner and thus may freely apportion profits according to the terms of a negotiated Joint Venture Agreement. Cooperative Joint Ventures are often used for Build-Operate-Transfer (BOT) projects. Wholly Foreign Owned Enterprises Known affectionately among old China hands as the WFOE (pronounced woofie’), this investment form allows 100% foreign ownership. It is attractive to the increasing number of foreign investors who already have business experience in China and thus don’t need to rely on a local partner to hold their hand as they make their way through the byzantine corridors of the local market. It is also popular among less experienced investors who want to avoid the hassles of dealing with a Chinese partner. Some industries are off-limits to 100% foreign ownership (there are even a few sensitive industries in which participation by Sino-foreign joint ventures is prohibited), but WFOE regulations have recently been relaxed in .pliance with China’s WTO obligations — certain restrictions have been eliminated concerning WFOE export volume and technological capabilities that once forced many investors to choose between either working with a Chinese partner or substantially modifying their business plans to conform to WFOE regulations. Representative Offices Although the establishment of a Representative Office (RO) is by far the most popular first step for foreign .panies seeking a presence in China, it is not an investment vehicle per se. Strictly speaking, it is not even a .pany. It is barred from carrying out direct business activities — it may not receive fees for its services, and its staff may not even sign contracts (although unfortunately, under certain circumstances it can still be taxed by the Chinese authorities). It is normally used for purposes such as market research, product sourcing, and liaison. The RO is popular among foreign investors as a way of establishing a .pany presence in China, and as a preliminary step aimed at learning enough about the Chinese market to minimize reliance on local partners in future ventures. The main advantage of an RO is that it is relatively quick, easy, and inexpensive to establish. The foregoing investment forms are not the only options. Some .panies prefer investment in or acquisition of existing Chinese .panies, and various cooperative arrangements with Chinese .panies (such as .pensatory trade, processing and assembling, etc.) are gaining increasing acceptance because they can spare a would-be investor from the risks of establishing a Chinese .pany from scratch. About the Author: 相关的主题文章:

What You Need To Know About Reputation Management-stanley博士的家2

Internet-Marketing Since time immemorial, the long-term success or failure of nearly any business has depended heavily on word of mouth. Human nature is notorious for giving far more attention to the occasional bad experience than to a quietly unremarkable host of good experiences, and a tiny minority of seriously dissatisfied and vocal customers can easily spread a misleadingly downbeat impression of a struggling business populated by decent people who want to make their customers happy. In the quicksilver world of social networks, off-the-cuff expressions of unhappiness can disseminate at the speed of light before much slower official responses can follow with their stories of temporary misunderstandings and successful resolutions. Adding insult to injury, old .ments on the Web can live forever as zombie assaults on the reputation of a .mercial concern that has tried mightily to deal fairly with its customers. Search engines such as industry giant Google account for a beefy portion of customer exposure to the shifting currents of reputation, which means focusing heavily on the results from those search engines for building a good reputation and responding quickly to brush-fires of discontent before they grow into larger conflagrations that can burn away the work of years. Fortunately, an entire industry has grown around reputation management, and the body of expert techniques has matured greatly. First, it’s useful to keep in mind that not all threats to reputation carry the same weight. Most people know that no one is perfect, and they’ll tend to discount minor quibbles such as having to wait a little longer for service during peak hours at a brick-and-mortar location or discovering that some delivery or another didn’t survive the rigors of shipping. Intermittent encounters with perceived displays of minor rudeness can also be largely ignored as long as the great majority of customers accept that rudeness by employees isn’t tolerated and that management will make it right. An experienced SEO (search-engine optimization) expert will ensure that a scattering of .plaints about minor problems remains dwarfed by a larger body of positive reports on such major review sites as Yelp, Amazon and other heavily trafficked destinations. Furthermore, depending on the specific industry and the goods or services on offer, the SEO expert might also focus on monitoring opinion trends at smaller, more specialized review sites that nonetheless are patronized by industry movers and shakers. In contrast to these less critical eruptions of low-key grumbling, public perceptions of major financial losses, severe disruptions or extreme rudeness seriously threaten a hard-earned reputation and must be addressed immediately with actions clearly aimed at .pletely fixing the problem. The longer the problem drags on, the more negative chatter on social networks can feed on itself. If a customer’s pet dog is suddenly eaten on the premises by an escaped tiger from a nearby zoo, for example, a savvy business owner will apologize handsomely to the customer and offer as appropriate to cover all the expenses of adopting a new friend. That the business owner isn’t at fault is .pletely irrelevant — perception is all. Additionally, the SEO expert in charge of reputation management will carefully ensure that significant discussion threads on major social-network platforms such as Twitter, Facebook, Pinterest, LinkedIn and Instagram are populated with sincere apologies and promises to work hard to prevent the problem from occurring again. Another .monly effective strategy is assigning responsibility to a single individual within the .pany for independently monitoring social networks for troublesome developments or spontaneous viral trends that can be leveraged for increased profitability. The same individual can be tasked with periodically writing chatty, informative blog entries on the .pany’s website that make it plain that the .pany is always looking for ways to better serve the needs of customers. Being heard is a basic human need, and persistently conveying the impression that management is listening will go far with laying the foundation for a robustly positive reputation that can easily shrug aside the occasional stings and slights of virtual stones. About the Author: 相关的主题文章: