Global Business Today 6th Edition by Charles Hill

Exercise 7

Reread the Management Focus on DMG-Shanghai and answer the following questions:
a)Why do you think it is so important to cultivate guanxi and guanxiwang in China?
b)What does the experience of DMG tell us about the way thinks work in China? What would likely happen to a business that obeyed all of the rules and regulations rather than trying to find a way round them as Dan Mintz apparently does?
c)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?