1 Running Head

Linda Dixon GM598 Week 2 Case Study

2 Running Head

1. Why do you think that it is so important to cultivate guanxi and guanxiwang in China? Our text defines guanxiwang as a social network and in this case study guanxi is described as a relationship. Due to China being closed to outside commerce, or the lack of a strong legal tradition, guanxi and guanxiwang can conduct and facilitate various business activities. By using both guanxi and guanxiwang, business can be conducted successfully and long term business relationships are built. 2. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business that obeyed all the rules and regulations, rather than trying to find a way around them as Dan Mintz apparently does? From learning about the DMG in China, I take away that it is important to understand the culture when conducting business in another country. China is very proud of their history and culture. Getting things done in China come from personal power and guanxi, not by a strict law that must be followed. Getting around the restrictions in which limit the function of the company is the reason or belief of Dan Mintz on why guanxi and guanxiwang are important. 3. What are the ethical issues that might arise when drawing upon guanxiwang to get things done in China? What does this suggest about the limits of using guanxiwang for a Western business committed to high ethical standards? Many companies in China rely on the relationship network, guanxiwang. Since the relationships consist of obligations that are reciprocal in nature or this for that, unethical actions could occur. Some things that could be asked of you could be against your beliefs or even illegal in nature. When guanxiwang is used in Western business, it must

3 Running Head

be done so for small favors. If the Western business reciprocates a favor that is illegal they could lose their good reputation.