Topic > Advantages and Disadvantages of Mergers - 2005

"Cultural amalgamation means that two cultures mix to form types of new culture." (Mihir, 2012) Due to the different expectations of Chinese and foreign multinationals, the operating and profit models of some companies are fraught with difficulties. Cooperative culture and business practices are yet other factors. Short-term profits are preferred in business decisions in Chinese enterprises. Furthermore, the company's operating mechanism lacks transparency, government and public oversight in China. China wants to politicize investments so that state-owned enterprises develop further; all leaders are appointed by the Chinese Communist Party. In addition to Western cooperative culture, they rely on true teamwork and employee cooperation to promote the development of companies within a long-term plan. Due to the lack of understanding of foreign culture, the implementation of employees is not satisfied. There is evidence that Chinese multinational enterprises have difficulty adapting to foreign laws, regulations, taxes and political environments. Transparency, supervision, corruption and the relational system all play a decisive role in determining which companies succeed and which fail. THE