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P193页 Role play : The foreign investor
A: hello, what can I do for you?
B: hello, I want to know something about foreign investment in china.
A: well, as the senior member of a Chinese consulting firm, we have the most complete firsthand date. there are four types of foreign investment: Commission trade, Buying Chinese securities, Joint venture and firms solely owned by foreigners.
B: En, what is the joint venture?
A: As the name suggests, a joint venture is a business with both Chinese and foreign investors. The Chinese brings in land, building, labor and funds and the foreigners come in machinery and technology.
B: what about the advantages and disadvantages?
A: The advantage is that a joint venture imposes a much smaller financing burden on the foreigners and the disadvantage is that as the directors and manages come from different backgrounds some misunderstandings and conflicts are unavoidable. But do not worry it can be deal with several months according to the survey.
B: well, how many types of the joint venture?
A: basically, there are two types: equity joint venture and contractual joint venture.
B: How about the profits and risks?
A: In an equity joint venture the profits and risks are shared according to the partner’s shares of equity in that venture everything is stipulated in a contract.
B: Which one is the better one?
A: from a foreign investor’s point of view, the equity joint venture has better legal protection and has more favorable policies in financing and taxation but the risks are great. well, from the last date to show that most foreigners choose this one.
B: thank you. Let me have a second thought.
A: It’s our pleasure, if you shall leave your address we would like to send you a detailed report about the joint venture for you reference.
B: Thank you so much. It’s very kind of you. What a good services.
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