For many global companies, China represents a very attractive market in terms of size and growth rate. Yet, it ranks lower in terms of economic freedom and higher in political risk than other country markets because it has a communist government. Despite these risks, Volkswagen, Isuzu, and Boeing are just a few of the hundreds of companies that have established manufacturing operations in China. This is due in large part to the Chinese government making sales in China contingent on a company’s willingness to locate production there. The government wants Chinese companies to learn modern management skills from non-Chinese companies and acquire technology. Some observers believe that when Western companies agree to such conditions, they are bargaining away important industry knowledge in exchange for sales today. Should Boeing and other companies go along with China’s terms, or should they risk losing sales by refusing to transfer technology?

A good tough question, without an obvious or correct answer. I see several critial issues. 1) can information and technology be contained? If Boeing doesnt sell its technology, will China just as easily obtain it from someone else (e.g., Airbus)? 2) Are the CEOS of companies like Boeing being short-sighted; going for the short-term gains at the expense of problems down the road? 3) In general, the U.S. as done well for itself by expanding overseas markets. When China developes things other countries want to buy, trade will occur, and both countries will be better off.

Lotsa luck.

I'm having trouble with this question and would like some help....

can information and technology be contained?

For many global companies, China represents a very attractive market in terms of size and growth rate. Yet, it ranks lower in terms of economic freedom and higher in political risk than other country markets because it has a communist government. Despite these risks, Volkswagen, Isuzu, and Boeing are just a few of the hundreds of companies that have established manufacturing operations in China. This is due in large part to the Chinese government making sales in China contingent on a company’s willingness to locate production there. The government wants Chinese companies to learn modern management skills from non-Chinese companies and acquire technology. Some observers believe that when Western companies agree to such conditions, they are bargaining away important industry knowledge in exchange for sales today. Should Boeing and other companies go along with China’s terms, or should they risk losing sales by refusing to transfer technology?

Containing information and technology can be a challenging task, especially in today's globalized and interconnected world. However, there are certain measures that can be taken to protect intellectual property and proprietary information. Here are a few strategies:

1. Non-disclosure agreements: Before entering into any business agreements or partnerships, companies can require the signing of non-disclosure agreements (NDAs). NDAs legally bind the parties involved to keep certain information confidential.

2. Intellectual property protection: Companies can obtain patents, trademarks, copyrights, and other forms of intellectual property protection to safeguard their innovative ideas, products, and technologies. These legal protections can make it more difficult for others to copy or steal proprietary information.

3. Secure supply chain management: Implementing strict supply chain management practices can help prevent unauthorized access to sensitive information. This includes carefully selecting suppliers and partners, conducting regular audits, and implementing secure communication channels.

4. IT security measures: Robust cybersecurity measures, such as firewalls, encryption, and access controls, can prevent unauthorized access to internal systems and networks. Regular security assessments and employee training on best practices for information security are also essential.

5. Controlled technology transfer: If companies decide to transfer technology to foreign markets, they can employ strategies to control and limit the access to specific technologies. This can include compartmentalizing technology transfer, implementing licenses with strict conditions, or granting limited access to certain components or processes.

Overall, while it may be challenging to completely contain information and technology, a combination of legal protections, security measures, and strategic decision-making can help mitigate the risks associated with technology transfer. Ultimately, each company must carefully evaluate the potential benefits and drawbacks before deciding whether or not to transfer technology to another country.