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International Business DB

International Business DB


Today China represents a leading market due to its size and growth rate. This is because of the country's population which has been attracting foreign companies. However, the Chinese communist government has been ranking lower in terms of political risk and economic freedom. Despite the stated risks, we have many global companies willing to take advantage of the Chinese attractive market by taking their business there.

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International Business: Boeing's Investment in China

The Chinese government believes that any foreign company willing to invest in the country should be ready to offer enough technology to the country. The government of China wants Chinese companies to gain modern management and leadership skills from foreign companies and as well acquire new technology (Eng, 2010). For Boeing and other companies, it will be necessary to agree to the demands of the communist government. Because this is a business practice, this companies should seize the opportunity and by so doing increase their net sales.

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Their transfer of technology and managerial skills to the Chinese companies and firms will not harm their business at all. Therefore Boeing and the other major global companies should not lose sales by refusing to transfer their technology to the Chinese (Boone & Kurtz, 2008). Despite what observers argue, the most important thing is the reward from the business process. Exchange of industry knowledge can definitely promote bilateral trade which encourages sales for both Chinese and western companies.


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In conclusion, I think that Boeing and other western companies should not risk losing extensive sales by not transferring their technology. While operating in the country they can as well borrow new Chinese technologies which will eventually improve their businesses (Strange & Slater, 2008). This is therefore the future towards successful international business. Failure to do so will interfere with globalization hence minimizing chances of global development and economic sustainability.

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