Futurist World Software Company

Question 1 (Word limit: 1,000 words)What is China’s policy toward foreign investment in terms of entry mode, location entry, and industry entry? Most of the MNCs would prefer to enter China using the following three options apart from the exporting their products to China. Franchising and providing Licenses: Under this type of business model a foreign company will provide its technology and the resources to market its product into the Chinese economy with its brand name for a specific period of time. The return for the same will come in the form of Royalty or a technology Know-how fees. It is one of the less riskyoptions to enter into the Chinese market. Under Chinese law, any technology that was a part of joint venture can be easily accessed by a local Chinese company without paying royalty or any know-how fees through government agencies until 1992 and even today there are concerns over the protection of intellectual property in China.Equity Joint Ventures: This is also one of entering mode into the Chinese economy. The Chinese Government allowed equity joint venture only after 1979 and which was the starting point of liberalization which is an open door