Doing Business in BRICS Countries

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 Part One
Introduction
This research paper examines the situation of SOLA, an automobile manufacturer with

plans to sell its goods in one of the BRICS countries. I'll examine at the BRICS countries'

economic, political, and cultural foundations. I'll also try to figure out how best to invest in

SOLA's marketing and how the activity differs from that of the states. The abbreviation BRICS

refers to a group of countries that includes Brazil, Russia, India, China, and South Africa. In

2010, South Africa became the last country to join the economic union.

BRICS countries have enormous potential, with many expecting that, due to cheaper

manufacturing and labor costs, they will dominate the supply of manufactured goods, raw

resources, and services. To design a good work plan, provide many details and suggestions.

These countries' influence has risen dramatically in the previous three decades. The BRIC

economic bloc amounted for only 11% of global gross domestic product in 1990. By 2014, the

percentage of global GDP had risen to 30%. (Choudhry, Marelli, and Signorelli, 2020). Because

of the current trends, investing in one of these countries is highly appealing. Low labour costs,

which allow for cheaper production, are a common attribute of the BRICS countries (Suh, 2019).

India, Brazil, and South Africa are all proponents of free markets. This study focuses on

investing in China, which has the greatest potential for growth. In terms of SOLA, I believe that

my selection will be based on the Chinese market, which is a large enough market for me to

employ. I regard Chinese people to be hard workers and disciplined, which would be a benefit

for SOLA in selecting well-educated individuals from China's 2 billion population. Towson and

Woetzel suggest something similar in 2014, predicting that more than 200 million people will

join the military. In around 6 years from now, in 2020, the middle class will emerge. Also, more

than 300 million people have done so in the last 30 years, according to the report (Qi & Xiao,
2007). Another reason I chose the Chinese market is because China has long been the leading

manufacturer of American products, leaving me with the impression that the government can

provide superior knowledge to investors.

Culture

China and the United States have vastly distinct civilizations that stem from their

respective founding histories. Well, there are a few major obstacles for the organization to

overcome in order to operate efficiently in China, showcasing how lovely Chinese culture and

lifestyle are, but how they differ from ours. China emphasizes group greatness, whereas the

United States is a meritocracy that places a premium on individual achievement. There is a

substantial disparity in hierarchical perception between the two nations inside society or

organizations. In China, hierarchy is valued more highly, and lower-level employees have no

access to those at the top. While hierarchies exist in America, they receive little attention, with

regular interaction between lower and higher ranks (Tsai & Men, 2014). In the United States,

social contacts are more direct, with less regard for personal life, which is considered intrusive.

The Chinese culture, on the other hand, encourages people to talk about their age, income, and

family. In the United States, freedom of expression is regarded as a right, whereas in China,

restrictions and fines are imposed on those who are more open (Lee, 2016).

People in China appear to be very collectivist, which means they care more about one

another, and because we have an impact on their relationships with their bosses and coworkers,

they do not represent their own image. The United States is demonstrating a significant

difference in how it conducts itself as one of the world's most individualistic nations, implying

that management and workers will have to make an effort to cope with China's culture and

demonstrate that they care about it, not just for friendship's sake, but because they genuinely care
about it. China has one of the world's highest population densities, with individuals acclimated to

a lack of personal space. Cities have big populations and are densely populated (Chen, Barros,

and Gil-Alana, 2016). Americans, on the other hand, want to claim their own space and despise

practises such as crowding in lines. Furthermore, those with private cars or who live on secluded

private property tend to isolate themselves even more. To avoid tarnishing one's reputation, the

Chinese culture largely discourages confrontation, whether in social or economic contexts. To

maintain relationships, people would avoid acting or saying things that would provoke the other

person (Goh, 2019). To Americans, however, the end justifies the means, and confrontations are

a part of everyday life. The cultures of the two countries are also heavily influenced by their

respective population compositions. The United States has a more diversified population, with

people of many races, whereas China is more homogeneous. In America, race relations have

resulted in significant tensions, which are not present in China (Suh, 2020). In contrast to the

United States, where individuals and organizations are more boastful and humility is equated

with weakness, Chinese citizens value humility and minimize their achievement.

Executives at SOLA must examine cultural differences that could influence the popularity of

similar items in the two nations. Flashy vehicles may not be popular in China, but they may be

popular in America for the same reason. In China, family groups are large, and smaller

automobiles would be more restricting and better suited to the individualistic ethos of the United

States. Successful business connections will necessitate taking into account how each culture

views the car and the firm as a whole. SOLA can then customize several aspects of the vehicle to

meet the needs of the populace.

 Economic, Political and Legal Considerations

Economic and political activity in China is inextricably linked. Many significant

corporations work for the ruling political party. Regardless of how restrictive the actions are, any

organisation that acts against the ruling party could face severe reprisal. China encourages

corporate monopolies and gives excessive benefit to those who are close to and friendly to the

ruling regime (Pavlicevic, 2018). China has copyright regulations in place to protect intellectual

property rights. However, such procedures are rarely followed, and numerous countries have

accused the country of stealing intellectual property (Holland, 2017). SOLA will face difficulties

in relating to the ruling parties and interacting with political organisations. Such methods are

uncommon in the United States, but they are necessary to keep operations running. Furthermore,

China has a government similar to that of most communist countries in the globe, which I do not

believe will have an impact on SOLA or even hinder industrial efforts. In terms of legal

considerations, foreign companies should complete and address the representative type for

starting up and employing Chinese people, including what liabilities are feasible, what expenses

and resources are required, and whether the representational framework authorized by local law

is acceptable or not. However, if the firm stays out of social and political affairs, it will be able to

function successfully within the state. The country's intellectual property protection could stifle

the firm's ability to operate efficiently. SOLA has a lot of technology that can be stolen and

reproduced, such as the batteries that allow cars to run for lengthy periods of time on a single

charge and 3D printing technology. Theft of intellectual property poses a significant threat to the

company's long-term viability. While they can sue anyone who steal their technology, winning a

lawsuit within the country would be difficult (Tsang, 2018). For a long time, China's economy
has been the world's fastest expanding, with a record number of people moving from poverty to

the middle class.

Society

Many businesses have varying requirements for different regions, and they typically

provide lesser quality in areas where laws are less severe. In other cases, businesses choose to

neglect quality requirements and bribe inspectors and other government officials to get around

rules. As I previously stated, I believe China has a great deal of competence in the field of

renewable-energy enterprises, and as a result, I believe SOLA will be able to continue operating

regularly with China. SOLA, on the other hand, will work to standardize quality to equal that of

the United States. The chosen country provides a good backdrop for the business to continue

using solar energy. China possesses the world's largest solar panels and vast fields for generating

renewable energy (Hughes and Meckling, 2017). SOLA can sustain its green policy by forming

agreements with solar energy manufacturers. Furthermore, the corporation can purchase separate

fields to supplement any power output shortfalls. Many firms face difficulties in adhering to

ethical and business best practices. Individuals or the organisation as a whole may be to blame

for the issues. In the case of SOLA, however, they should assess each new hire's background. If

they have a history of corruption allegations or cases, they should be disqualified. All employees

should be given a copy of a solid ethical conduct code. Those found guilty of wrongdoing should

face harsh penalties, according to the code. Finally, due to the concealment of evidence by

corporations, government-led manhunts come to a halt. SOLA should take a different approach,

cooperating with all inquiries and readily handing over information on people who are facing

charges.
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