CHAPTER I
INTRODUCTION

1.1 Background of the Study

Most non-Chinese find the behaviors of Chinese in terms of business peculiar. To be able to understand their behaviors, one must learn and understand their culture.

China is a diverse country; however, unity is very apparent in their culture. One main factor for their unity is the influence of Confucianism. Confucianism governs every relationship in China, and that includes business relations. Chinese culture is relationship-based. For Chinese, you are successful if you are well connected with other people (http://www.quickmba.com/mgmt/intl/china/).

It makes a lot of difference in society if a person has good “connections” (guanxi in Chinese). Social connections bring a lot of benefits, while its absence makes things difficult. This is the reason why in the ethnic Chinese community, people try to find and establish kinship relations and connections with as many people as possible (Juan, 1996).

“Guanxi” is an important element in Chinese businesses that serves as glue for members of their society. It literally means "relationships". In the Chinese business world, however, it is also understood as the network of relationships among different parties that cooperate and support one another. The Chinese businessmen practice the principle of "You scratch my back, I’ll scratch yours." In essence, this points to exchanging favors, which are expected to be done regularly and voluntarily by the parties involved. (http://chineseculture.about.com/gi/dynamic/offsite.htm).

According to Go Bon Juan’s Economic Miracle (1996), Clan, ethics, filial piety, and the countless fraternities, family associations and other organizations, hometown associations and other organizations were formed in response to objective necessities. The formation of the Chinese community in the Philippines was a result of their desire for mutual support and protection in response to the oppression and discrimination they were subjected to. The Chinese community is a business community. We must realize that the formation of the Chinese community and associations and the thousand and one blood relations and hometown relations among the Chinese are really business relations (p. 57).

However, a Chinese living alone in a foreign land, such as the Philippines, with no relatives can still build up some wealth and success through industry and frugality. In analyzing Chinese traditional culture, the most significant about traditional virtues responsible for their achievements are industry and frugality. It cannot be denied that industry and frugality made major impact on the economic success attained by the Chinese.

The subject for analysis of this paper is the perception of Internal Auditing students about the domination of Chinese nationality in the Philippine business market.

1.2 Statement of the Problem

This study sought to analyze the perception of Internal Auditing students about the domination of Chinese nationality in the Philippine business market. To attain this goal, the following problems were addressed in this inquiry:

1. What is the demographic data of the Internal Auditing students as to:
a. Age
b. Gender
c. Year Level

2. Are Internal Auditing students in favor of the domination of Chinese businessmen in the Philippine Market?

3. Do Internal Auditing students prefer patronizing Chinese products and services over our local products and services?

4. Do Internal Auditing students see the domination of Chinese businessmen in the Philippine Market a great opportunity for the nation?

5. Do Chinese businessmen in the Philippine Market serves as an inspiration to the aspiring entrepreneurs of our society?

1.3 Significance of the Study
The output of this research will be helpful to the following: 1. To the Filipino business students. This study will inspire them to study well so that they may have enough baggage of knowledge that will be very useful in building their own business. Furthermore, this will also make them realize that the Philippine Market should be dominated by the Filipino businessmen, not businessmen from other countries.

2. To the aspiring entrepreneurs. This research can be used as a guide for them to develop and enhance some attributable business techniques that be deeply embedded in their respective organization that may lead to their future success especially based on the perception of the students. Moreover, the findings of this research may also have implications on how they are going to manage and handle their future business.

3. To the Filipino businessmen. This study will provide deeper understanding regarding effective business strategies and practices. This will also give them information on how the IA students perceive our local products.

1.4 Scope and Limitations of the Study

The study is an analysis of the perception of IA students about the domination of Chinese nationality in the Philippine business market. The research is limited to business students and young entrepreneurs who could be future businessmen of our country. However, professionals are welcome to study this research since it is business related, but the latter must set a lower expectation since we’re only limited of research materials as students and it is anticipated that there may be some problems with regards to the reliability of the data generated and readers shall take considerations unto it. Also, this research is limited only to the products being exported to the Philippines by the Chinese businessmen made originally from China, not the products of Chinese businessmen made here in the Philippines which is the reason why certain contradicting results arises from this research. In addition to that, the minimum and maximum number of students at a given time is beyond the control of the researchers while conducting the survey during the selected time for the tool execution. However, the researchers have set a limit to a number of students per year level.