Week 12

Question 1

China Two humiliation afterwards (Erniedrigungen)

Answer 1

• opium wars

- treaty ports

Question 2

opium wars

Answer 2

China lose the war with england so they had to open 1/2 of their treaty ports (Vertragshäfen)

Question 3

target of Deng Xiaoping

Answer 3

make china rich again

Question 4

target of Xi Jinping

Answer 4

make china strong again

Question 5

Economic reform roadmap

Answer 5

market to play a “decisive role” in resource allocation –> state is always involved as well

• But the state sector should have a “dominant role” in the economy
• Resource allocation by market principles, but control is with the state / party

Question 6

China Country Risk by political Systems

Answer 6

▪ Government takeover of assets
▪ Embargoes and sanctions
▪ Boycotts
▪ Terrorism
▪ War, insurrection, violence

Question 7

Foreign-owned firms consider that their main weaknesses vis-à-vis their Chinese competitors lay in chines firms’ superiority in

Answer 7

▪ Cost advantages
▪ Price
▪ Relationships with government and other guanxi

Question 8

Catalogue for the guidance of foreign investment industries → these are always to be seen within the context of china’s industrial policies

Answer 8

▪ Restricted
▪ Prohibited
▪ Permitted
▪ Encouraged

Question 9

The Strategy Tripod

Answer 9

▪ Industry-based competition → 5 Forces
▪ Firm-specific resources and capabilities → SWOT, VRIN
▪ Institutional conditions and transitions → PESTEL

Question 10

China Consumers increasingly …

Answer 10

brand loyal, connected and mobile

Question 11

a general Tun Tzu

Answer 11

Confucianism as dominant moral philosophy

- Defeat an enemy using mental cunning / wisdom

Question 12

Contemporary Chinese political culture

Answer 12

political influence is very important → Maoist bureaucrat → priority to national interests, avoids responsibility, tough negotiator, long waiting for approvals, sensitivity to price
• Agrarianism (and collectivism) -> traditional basis of Chinese culture → thrift and endurance like long-term orientation
• Pictographic language → Chinese children are better at seeing the big picture

Question 13

Cultural change and the prevalence of guanxi

Answer 13

relationship management → exchange of favors
• Confucianism’s 5 core values
o Moral cultivation, Relationships, Respect, Harmony, Face (you can lose or giving face → you’re Chinese is so good; giving face)
• To be achieved through self-cultivation

Question 14

Example: if you negotiate, you can use

Answer 14

Confucius-Approach or the Sun-Tzu-Approach → dinner before you negotiate with a partner:
• You are treated very warmly (Confucius)
• If you have a relationship in advanced (Confucius)
• You are invited and you become alcohol and you don’t feel well for negotiation and you are less confident (Sun-Tzu)