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In: Business and Management

Submitted By zheng12shirley
Words 890
Pages 4
Legal and Cultural environment that affect our marketing plan and product
When we doing export business, we have to understand the regulation that apply to specific product, and also more general rules about the products. Failure to catch up those information could cause delay and lost when we doing export business.
China have freedom in undertaking all the import and export activities including international trade, with the exception of those forbidden by state laws and regulations. And China is a big market for us to expanding, our target segment is wide, so China gonna be good choice to do the export business.

Legislation for importing food
Food which is intended for human consumption must meet the general food safety requirements of law.
Under the regulation these requirements are that food must not be unsafe, i.e.:
Injurious to health
Unfit for human consumption
Apart from the general provisions of regulation, the specific legislation applying to imported food will depend on whether the food is of animal origin or not:
Food containing animal products includes meat, meat pies, salami, poultry, fish, eggs, milk, dairy products, and honey.
Food that has no animal content includes fruit, vegetables, cereals, certain bakery products, herbs, and spices, mineral water, and fruit juices.

Some of the import and export procedures are open to choice. Whether these procedures are necessary is solely decided by the kinds of import and export and the category of the import and export commodities.

China Import Procedures
Most of the import businesses in China are transacted in FOB prices. Only a very small minority of the import commodities are transacted on CIF terms. The majority of means of payment are in letter of credit (L/C).

The commodity import include a series of steps from signing a contract to making the payment. The general import procedures transacted under the terms of FOB include: writing down an effective contract, writing L/C, booking space, pushing for shipment, insurance, checking documents, making payment, customs declaration, receiving the shipment, inspection, goods delivery and claiming import indemnity.
For the plan to export our product to china we have to prepare those documents

Cultural environment
China contains one-fifth of the world's population and is the world's fastest-growing economy.
China is an emerging economy that offers lot of market opportunities for foreign investment. Although the country has a huge potential for economic growth offering access to a large market and considerable savings in labor costs, caution must be used due to differences in the political and cultural environment that create risk and pose uncertainty for foreign investors. Our strategy to do business in China should firstly follow by the particular culture of Chinese.

Chinese culture – Key Concepts and Values
Guanxi – In literal terms, this central concept in Chinese culture means ‘relationships’ or‘connections’. Guanxi is a network of elaborate relationships promoting trust and cooperationand for centuries was the main way of accomplishing everyday tasks. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In the world of business, possessing the right guanxi is crucial for ensuring the minimisation of difficulties and frustrations that are often encountered.

Mianzi – An important issue that should be considered throughout business interactions with the Chinese is the concept of ‘mianzi’ or ‘face’. Face is a mark of personal pride and forms the basis of an individual’s reputation and social status. In Chinese business culture ‘saving face’,‘losing face’ and ‘giving face’ are vital for successful business. Causing someone to lose face through public humiliation or inappropriate allocation of respect to individuals within the organisation can seriously damage business discussions. On the other hand, praising someone in moderation before their colleagues is a form of ‘giving face’ and can earn respect, loyalty and aid negotiations.

China Business Culture – Doing Business in China o Business practices in China
• The exchanging of business cards in customary in Chinese business culture. One side should be printed in English and one in Chinese. You should present your card with both hands and with the Chinese side facing up. When accepting your colleague’s card study it carefully before placing it on the table, never in the back pocket, as this is extremely disrespectful.
• During negotiations, humbleness and patience is the key to success. The Chinese sense of time means that they use it knowingly and there is always enough.
• In most cases, initial meetings may be more of a social opportunity as oppose to a negotiation discussion.
• An important element before commencing a business meeting in China is to engage in small talk. Be prepared, as this may include quite personal questions. o Chinese business etiquette (Do’s and Don’ts) DO maintain eye contact with your interlocutor, avoiding eye contact is considered untrustworthy. DO address your Chinese counterparts with a title and their last name. If the person does not have a title, use ‘Mr’ or ‘Madam’. DO wait for your Chinese counterpart to initiate formal greetings. Handshakes are the most popular gesture. DON’T assume that a nod is a sign of agreement. More often than not, it signifies that the person is simply listening. DON’T show excessive emotion whilst conducting business, as it may seem unfriendly DON’T use direct negative replies, as they are considered impolite. Instead of saying
‘no’, answer ‘maybe’ or ‘I’ll think about it.’
Chinese Culture

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