International Business (MGT-321) Assignment: China's Business

This assignment for MGT-321, Introduction to International Business, analyzes the significance of Guanxi and Guanxiwang in the Chinese business environment. The paper addresses three key questions, examining how Guanxi facilitates long-term business relationships and contributes to success in China, particularly given the absence of a strong rule-based legal system. It explores the importance of personal connections and reciprocal obligations, and it highlights the ethical implications of Guanxi, especially for Western companies. The assignment uses examples such as DMG in Shanghai to illustrate the practical application of Guanxi and Guanxiwang, emphasizing the importance of cultural understanding and relationship building in overcoming business limitations. The discussion includes the potential for ethical issues like bribery and barriers to market entry, as well as the impact on free market economics. The paper also references several academic sources to support the analysis.

Running Head: INTERNATIONAL BUSINESS 0
International Business
(Student Name)

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Table of Contents
Answer 1..........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................2
References........................................................................................................................................4

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Answer 1
It is a significant tool for developing long-term business relations and for business
success in China. Guanxi and Guanxiwang are vital for business in China. Since China is a broad
mechanism region. By building relationships, it would lead to a better mission and mechanism;
and the Chinese company does not have a clear rules-based legal tradition, rendering the Guanxi
and Guangxiwang essential and mutual regulations Guanxi is dedicated to accepting an
obligation to return the gain to its citizens in the uncertain future when they benefit from the
Guanxi network (Liu, Nandhakumar & Zachariadis, 2018). Guanxi growth and expansion are a
form of social investment that enriches the managers ' capital and their potential for future
development. The value of that guanxi and guanxiwang in China is to recognize the
imperativeness of the personal link between two men, who are bound to follow the social rules of
guanxi through an implied psychological contract. The norms include self-information,
reciprocal reciprocity and the concept of long-term equity. Establishing ties in partnerships will
help to achieve a better job and could change rules for a temporary period. China's culture lacks a
strong rule-based legal tradition, rendering Guanxi and Guanxiwang a necessary and important
facility to establish long-term business relationships and effectively conduct business in China
(Chu, Cao, Yang & Mundel, 2019).
Question 2
The secret to China has always been political influence and ties or partnerships (guanxi),
rather than the rule of law. Many students would probably agree that it is probably difficult for
businesses that play by the rules in China to succeed. China is a nation full of people who do
nothing free of charge. It always requires a quality. It is recognized in the USA as bribery and is
an offense both under the laws on bribery and white collar law. The organization which wanted
to comply with all laws would never do anything. Looking at DMG in Shanghai, we are more
clearly aware of the impact of guanxi. Dan Mintz, DMG's creator, has had no prior commercial
experience. In China, he had no touch, no language of the Mandarin. He also had a guanxi with
two young Chinese people with different degrees of touch. By developing ties as the base of the
guanxiwang group, they have emerged as one of the fastest growing advertisement organizations
in China. DMG demonstrates that culture in China is significant. Guanxi relates to the

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commercial ties so essential to Chinese companies. Guanxiwang refers to the network of
relationships between companies. Both of these are essential to Confucian ethics, which guide
business in China–fidelity, shared responsibilities and fairness in communicating with others.
Dan Mintz believes the guanxi and guanxiwang are essential because they help businesses to
overcome limitations which restrict their ability to operate. It is also very handy when you have a
good job client (North et al., 2016).
Question 3
In business ethics, particularly when relating to Western companies coming to China,
Guanxiwang plays a crucial role. According to the situation, without a mediator, a third party
who proposes how to do business in China, it is difficult to do anything. For examples in this
case: Peter Xiao and Bing Wu. Chinese people obviously will not communicate with foreigners,
unless someone in the networking group is able to draw guanxiwang. The mutual
responsibilities almost as bribe! Business ethics in China depends on an extensive and diverse
cultural heritage that emphasizes moral integrity and the correct organization of social
organization and institutions ' personal relations.
There are numerous ethical questions to which Guanxiwang can be prompted. First of all,
certain business opportunities will not be open. Guanxi companies that operate can be barriers to
market entry for those who start a business. Existing companies, for example, can use Guanxi to
start confrontations between them and gain limited rights to use critical facilities to handle
government operations. Finally, the free market economic system could be affected (Liu,
Nandhakumar & Zachariadis, 2018).
Furthermore, Western companies are subject to law, fairness and equality within
themselves. A business which wants to develop guanxiwang can be penalized by law or can even
have legal consequences for its acts (Lee, Tang, Yip & Sharma, 2018).

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References
Chu, S. C., Cao, Y., Yang, J., & Mundel, J. (2019). Understanding Advertising Client–Agency
Relationships in China: A Multimethod Approach to Investigate Guanxi Dimensions and
Agency Performance. Journal of Advertising, 48(5), 473-494.
Lee, L. W., Tang, Y., Yip, L. S., & Sharma, P. (2018). Managing customer relationships in the
emerging markets–guanxi as a driver of Chinese customer loyalty. Journal of business
research, 86, 356-365.
Liu, J., Nandhakumar, J., & Zachariadis, M. (2018). When guanxi meets structural holes:
Exploring the guanxi networks of Chinese entrepreneurs on digital platforms. The
Journal of Strategic Information Systems, 27(4), 311-334.
Liu, J., Nandhakumar, J., & Zachariadis, M. (2018). When guanxi meets structural holes:
Exploring the guanxi networks of Chinese entrepreneurs on digital platforms. The
Journal of Strategic Information Systems, 27(4), 311-334.
North, R. J., Lewis, D. M., Capecelatro, M. R., Sherrill, B. N., Ravyts, S. G., & Fontan, G.
(2016). The things they carry: Characterizing the biggest problems in the lives of
emerging adults. Journal of Social and Clinical Psychology, 35(6), 437-454.