Political regime is emphasizes for foreign direct investment for foreign governments to either induce or promote consolidation(Toke, S.2011) regime is set of structure as a form of government or state system that make up a state which create a specific rule within a political system(wisegeek.com). A regimes is made by the country to protect the country interest in daily life activities, each of country is having a different set of political rules likewise the world dominant business centre United States and China that have a significant future potential for continue growth (Gomez, M.2007). Difference in political ideologies, history and culture background in a country determines how an overseas investor should prepare a strategy to entering their destination country, each country has a different regime to take into account. A legal rules relating on how the business should run such as investment, taxation , employee rights, is depend on the government as the representative of the citizen who are need to take control on increase or decrease of their standard of living. This essay will compare a difference in political regime in China as a communist government (Wall, Stuart. 2010) and United States as a country that growing a liberal attitude (Currant, Giorel.2010). Where the regime is become the base of all activities run in the country, foreign business creator is need to understand in order to be success and did not involve in any constraints in the destination country.
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China have been live in a communism since its first chairman and founder of people’s republic of china Mao success in implement a successful economy growth in communist rule (Shapiro, Ellen.2010).Communism ideology is highly cautious, intensively bureaucratic and concerned first and foremost with self-reservation ,which Communist officials are known as cadres(factanddetail.com) The Communist Party has made economic growth and nationalism from the basis for its legitimacy during began an effort to put to rights the obvious contradictions between the Marxist ideology (factanddetail.com), where in this states a equality of status is being forced and those who initiate to oppose will have a consequences in legal way. As the only legal party in China, during 1979 Communism Party has enter the government portion and owned a significant size of state-own enterprises that domain all resources allocation, decision making and personnel management that determine prices and calculate their return based on forecast and granting a loans when a bankruptcy is occurs, (Lasserre,P. 1999) throughout its domination ,communism party is relied on police and military that have not changed until now. Only those who are in a high status of the party involve in making decision, the Communist Party has maintain their influence by providing a help for those who need, especially in rural area such as farmer that is freed from taxes. According to Jim Yardley in New York Times, economic and social change is so rapid in China that the communist party is sometimes describes as an overwhelmed caretaker, yet threats any potential opposition in order to hold their political power. As time goes in 2004 Zeng Qinghong, a highly regarded political fixer said that the power of the party does not last as long as the party does, he pursue to reform in the face of pressures such as liberalization, globalization and stagnation in the party (factanddetail.com).Communism have become ideology in China and exists today that have changed prosperity and better life to Chinese. On October 2007 on the Communist’s Party 17th National Congress the new leadership Hu jin tao elect a new member of 204 committee which 105 members are newly elected, and many of those come from the Communist Party Youth League (Ewing,K. 2007). These days a communism has not control every aspects such as individual problem like it has before, the Chinese Communist Party has always control the country in behind cloak of nationalism to defend them from western influence. Futile action from the urban middle class to have more political freedom do have a prohibitively high cost of failure, over the last three decades the party have shown the economic reform without changing their ideology likewise other neighbours country, the idea that china would become a democracy is just a western notion (McGregor, R.2011).China as a multinationals country who rely on their history has sure will stand as their an previous leader done.
Liberalism is defined as a believer in government action to achieve equal opportunity and equality for all, and the needs of government to solve a problem (studentnewsdaily.com). Different with China who have ideology where everyone will have the same equality in status, in United States who has more power will have a higher status in the society. From the history US have lead by communist leader Lincoln (Weiner.L.2011), and become a liberal country that have all of freedom, including market freedoms, responsibility where conservatives would not be so upright in people ideology( Rourke , P.2011, January).Despite on legal system in united states, people have been live in a liberal life, each individual is provided with the means of the basis of their individual talent and initiative (Ryan,N.et all . 2003).Personal effort that someone attempt to do in order to achieve a higher status make them become a rival in term of achieve personal expectation. Different in amount that someone earn may be different as a reflect the benefit from different individual hard work and skill (Heywood,pp.230-35).The government will reserve what the community needs but not directly control all the step as long as it is done it right thing. (Hoekema, D.2010) Moore defined individual rights are essential defence against the state’s false claims of supremacy. Always look for a better life and working hard for it, is a western typical of people, doing everything that they can as a reflection of freedom that the country give them , where a country also have a legal movement to stop their activities if it’s not appropriate.
As the political regime in each country is different, a foreign investor has to be able to consider how they act in order to synchronize their origin country politic and their destination country. A free market is release in US where in China a free market is not fully applied, where there is government intervention whether it is direct or indirect. China did embrace a free market but which are straining to retain control of the political sphere.(Lassarre,P.1999) When a foreign country wan to open or assign in joint venture in China a western is in a problematic situation where a polititicied issue and freedom is restricted, make it a relationship with the authority is a key term for the foreign investor to be success in China (Lassarre,P.1999). As communism rule everything China is centralise their local industry to be in the top priority, whether if there are is highly potential business who may take the top position in each industry, government will try to make it hard for them to not interfere local business. Intellectual property right in a free market such as patent right is valid in US especially in medical technology such as biotechnology other kind of gen is patentable(Wall, S.2010).Where in China for such industries the tax rate in increased at a state – set prices, a limitation for a foreign access to tens of billions of dollars in contract for technology needed for the businesses(Browne, A.2010).In different aspect of technology China has been one of largest offshore in IT work (Friedman, 2005), where US is well-known as a high tech country such as Apple.inc. Other aspect is educational status between both country many well known university such as Harvard, Oxford have been the top universities in the world, a high skill employment compare with Chinese.(Gomez,M.2007) .Other factors such as difficulties of language is also important as not much Chinese can’t speak English as international language or other language properly.
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In conclusion a liberal regime is give a wider opportunity rather than communism ideology which did not give so much freedom of opportunity to be success. A medical industry that needs a lot of capital in technology, money, and knowledge is as basic necessity and US have proof to be a right country to start the business with. Bigger chance to collect resources needed, success in creating an invention, many high skill labours, availability for a intellectual property right in free market and a freedom which really exist. Compare with Chinese that may be more advanced in next few years but still there is no guarantee that Chinese government will help other than their local company to lead any industry in their own country, unless being part of them , which is a hard thing to do when someone who is new have nothing to offer for them .
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