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

Managing Multinational Operations - Assignment ExampleAccording to the New alien commerce Law amended in April 2004, import goods and technologies are divided into four categories, namely prohibited imports, restricted imports, free imports, and goods under tariff-rate quota management (Hong Kong Trade Development Council).The exports are restricted for resources that are in short supply in China. The contrary currency rules allow enterprises to either sell their international exchanges to reliable banks or open current remote currency accounts to keep their foreign exchange.Foreign-invested enterprises (FIEs) and foreign enterprises have to pay income tax on their income derived from production, business operations and new(prenominal) 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 enterprise s in preferred sectors are subject to lower 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 foreign 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 government 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 Property RightsChina provides various ways to foreign invested enterprises to experience that their intellectual property is adequately protected. These include various laws and regulations and patent and trademark registration facilities to the foreign investors.Sources of FundsThe minimum capital requirement for limited indebtedness company is Rmb30,000 and for joint stock limited companies, it is Rmb5 million. The rules