International Business Expansion


As the representative of a U.S. rubber-production company, the main aim involves increasing sales through the corporation’s universal expansion. The nation of origin chosen by the corporation is China.  The key reason for selecting China is attributed to China and the U.S. having a very enormous and stimulating association regarding trade. With China’s current developments in global business and globalization, expanding into the nation seems to be a lucrative prospect. According to the IBIS World report, tire production is projected to be approximately 1.6 billion units as China is considered the significant manufacturer, followed by the United States and Japan.


The Role of Management

Management typically acts as champions that direct the project and offer management to guarantee the actualized growth plan. The administrative officers and the board of directors are liable for generating the mission, vision, and offering direction. They define the strategies and articulate a long-range design to cultivate and cultivate commitment from the beginning. They similarly secure the initial commitment and assign resources concerning the projects.  The management similarly endeavors to accomplish objectives within the set strategies and constraints (Workman, 2016). Also, they describe the project’s progress and monitoring every worst-case scenario.

Mode of Entry and Justification

The corporation will attempt to have a wholly-owned subordinate in China by means of acquisition. The mode of entry permits for the primary and fastest accessibility of the market through worldwide development. The corporation will attain significant market power to impact the market share. The company may acquire a small tire production corporation in China to achieve a competitive edge and core capability within the Chinese and more significant Asian market. Through purchase, competition is significantly diminished, and there is an enhanced information base.


Staffing Needs

Accessing the Chinese market by acquisition signifies that the corporation may have to embrace the Chinese workers. This may generate cross-cultural subjects given the contradictory Western and Chinese workstation administration practices and mutual anticipations (Yoder, 2016). Liberalization of the market allows the company to define terms and conditions of engagement. The corporation will second experts from the headquarters and incorporate the numerous recruitment sources in China to engage personnel based on the needs. The corporation will similarly hire Chinese graduates who finalized their studies in universities within the United States or Europe.

Selection of a Manager

The administrator will be chosen competitively and based on virtue. The administrator should prove a better market understanding and working relation with the country. He should bear the capability of quickly adapting to the local settings. Also, the manager should generate a superior people-centric workstation compared to pay for performance. The administrator should reduce costs but preserve quality and defining urgencies through identifying intricacies attributed to communism.


Cross-Cultural Issues

China prefers conducting official business with individuals they are familiar with. Patience is imperative as it takes a long to develop a connection, and there are numerous administration bureaucracies. They perceive foreigners as firm agents rather than individuals. Individuals should be subtle to rank variances, and the Chinese favor face-to-face interaction. Social protocols are imperative, and mealtimes are not shared in business consultations.  Promptness is quality, and one should send the program before the consultation to let the Chinese colleagues examine the subject.

Protocol and Etiquette Issues

The corporation will endeavor to be prepared before meeting and organizing approximately 20 black and white manuscripts of the firm’s application. Small talks are essential before the meeting’s commencement. The firm will endeavor to generate a healthy relationship before finalizing the agreement—the Chinese access consultations founded on hierarchy, with the first person entering the delegation head. Greetings are typical but introduced by the Chinese. The firm will similarly incorporate titles of courteousness and using various Chinese tags (Wang, 2016). Besides, there should be an interchange of chit-chats, circumvention of politics, and sturdy undesirable proclamations.


Determinants of Foreign Entry and How to Enter the Market

Several determinants of entry to the external market include the cost of operation, availability of raw materials, technology, economic aspects, and overall political stability. To guarantee a smooth changeover, a corporation should undertake an initial contextual study and market analysis. It must similarly segment the market by income, consumer behaviors, and topography. The corporation should also catalog its emblems in China before the entrance and ultimately conducting due diligence on every prospect and associates.

The Political, Legal, Economic, and Ideological Issues

Constricted market guidelines by the administration, non-existence of intellectual property privileges fortification, high-interest rates, low-value of the legal tender, and contradictory cross-cultural principles are some of the concerns that may arise.


Regarding global development, the corporation needs to strategize to guarantee the new undertaking is accomplished. Every role and responsibility should be acknowledged; the corporation should likewise consider the current entry mode, cross-cultural challenges, staffing constraints, and the party-political, legal, economic, and philosophical subject. This will result in significant achievements in development strategies.




Wang, M. (2016). Applying Psychology of Persuasion to Business Negotiation. Business and      Management Research5(2), p12.

Workman, D. (2016, May 10). Rubber Tires Exports by Country. Retrieved from   

Yoder, S., Visich, J. K., & Rustambekov, E. (2016). Lessons learned from international expansion failures and successes. Business Horizons59(2), 233-243.








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