business environment

Read the case and answer the question below: Charles Patton's company sent him to China to oversee the building of a new manufacturing plant. The company originally considered building its plant in Guangzhou but, due to rising labor costs, determined that investing in Sichuan / province would be more cost-effective. The government officials in Chengdu were eager to see the company invest in their region and had been very helpful in providing the initial permits. The company sponsored many dinners for their Chinese hosts and Charles made every effort to establish strong ties with local businessmen and government officials. As the project progressed, however, Charles had more and more difficulty obtaining approval from the necessary government agencies. Considerable time and money had been sunk into getting the plant built and Charles was feeling pressure from headquarters to get the plant up and running. In a meeting with Liu Jing, his contact in the municipal government, Charles expressed his concern that the bureaucratic process to obtain the requisite permits was going more slowly than anticipated. Charles was eager to speed up the process and wondered if she had any advice. A few days later, Liu Jing came to Charles's hotel. She suggested that Charles had not been generous enough with the government officials, and that a few well placed gifts might help speed the permit 37C CPU REDMI NOTE 8 AI QUAD CAMERA enough with the government officials, and that a few well placed gifts might help speed the permit process. Charles was taken aback and said that the laws in his country, not to mention company policy, prevented him from doing so. Liu Jing smiled and handed Charles a piece of paper with the name of a local physician. She indicated that if Charles went to this doctor, the doctor would prescribe a costly medical procedure. As the cost would not be out of line with accepted international rates and the claim would be difficult to investigate, the insurance company would not likely question its validity. The insurance company would pay the fee to the doctor, who would take a small cut and turn the rest over to the appropriate government officials. For a quick doctor's visit and a few insurance forms to fill out, Charles would have his permits. Source Claus, L. (2007), Global HR in Action Vignettes, Willamette University, www.willamette.edu/agsm/global-hr. Question: 1. Please apply the institution-based theories especially from perspectives of economic, political ENG and legal system, cultural distance and corporate ethics to analyze the case and provide ^ 0 0 5 36C CPUE REDMI NOTE 8 AI QUAD CAMERA estion for Charles in this case. (20) .. work Teaching P... SILKHOMOVAODINA... www.willamette.edu/agsm/global-hr. Question: 1. Please apply the institution-based theories especially from perspectives of economic, political and legal system, cultural distance and corporate ethics to analyze the case and provide suggestion for Charles in this case. (20) 2. Illustrate how 'power distance in the culture distance perspective may affect the strategy choices in this case, and what is the line between culture and legal consideration. (10) (30.09) S2 T U Ba Ets @ REDMI NOTE 8 AI QUAD CAMERA 370