Managing Multinational Operations Assignment Example | Topics and Well Written Essays - 1000 words

Managing Multinational Operations - Assignment ExampleAccording to the New exotic Trade Law amended in April 2004, import goods and technologies are divided into four categories, namely disallow imports, restricted imports, free imports, and goods under tariff-rate quota management (Hong Kong Trade teaching Council).The exports are restricted for resources that are in short supply in China. The orthogonal currency rules allow first steps to either sell their outside exchanges to genuine banks or open current foreign currency accounts to keep their foreign exchange.Foreign-invested enterprises (FIEs) and foreign enterprises have to settle income tax on their income derived from production, business operations and other sources within the territory of China (Hong Kong Trade Development Council).Income tax on foreign enterprises is levied on an annual basis and paid in advance in quarterly installment (Hong Kong Trade Development Council). The foreign enterprises in preferred se ctors are subject to turn away income tax rate of 15%.A foreign enterprise can open a foreign exchange settlement account through one of the banks and can use this fund to make orthogonal payments, whenever required. In case additional funds are required, this can be purchased from the bank. A foreign enterprise can also open a foreign exchange capital fund account. Chinese administration also allows the foreign enterprises to remit their profits, dividends and bonuses outside the country.ChineseFinancial and accounting systemChinese government requires all companies, including the foreign enterprises to comply with Financial Principles for Enterprises (Hong Kong Trade Development Council). These rules provide guidance to enterprises to develop their financial statements.Intellectual airplane propeller RightsChina provides various(a) ways to foreign invested enterprises to ensure that their intellectual property is adequately protected. These include various laws and regulation s and patent and trademark registration facilities to the foreign investors.Sources of FundsThe minimum capital requirement for limited obligation company is Rmb30,000 and for joint stock limited companies, it is Rmb5 million. The rules