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Futurist World Ltd is a leading Australian software company based in Melbourne.

Question 1 (Word limit: 1,000 words)

Futurist World Ltd is a leading Australian software company based in Melbourne. It has long been coveting the huge software market in China. Robin Lipton, the CEO of Futurist World Ltd, is keen to set up a business structure in China as soon as possible. To make sure that the company makes the right decision on its China plan, he wants succinct answers to the following questions: What is China’s policy toward foreign investment in terms of entry mode, location entry and industry entry? Which business structure (an equity joint venture, a cooperative joint venture, or a wholly foreign owned company) is better for Futurist World Ltd to do business in China, and why? Under China’s current Anti-Monopoly Law, how are mergers and acquisitions involving foreign investors regulated?

Question 2 (Word limit: 500 words)

China’s new Labour Contract Law is the most significant reform to the law of employment relations in more than a decade. It was promulgated by the Standing Committee of the National People’s Congress on 29 June 2007 following highly contentious debates over the terms of earlier drafts – debates involving not only a range of Chinese parties, but also international business lobbyists and labour organisations. On the one hand, there is an urgent need for better protection of workers’ rights in order to maintain the social and political stability. On the other hand, the implementation of this law might increase labour costs, making production in China more expensive and forcing many businesses to shut down. The Labour Contract Law represents a compromise between the competing demands of business and labour. How responsive is the new Labour Contract Law to areas of concern identified by various stakeholders? What contribution does the new law make to social stability?

Question 3 (Word limit: 500 words)

Chelsea and John are the shareholders and directors of a company registered in Beijing, China. They each own 50% of the shares in the company. The company constitution does not contain dispute resolution mechanisms. In recent months, they have a major dispute over profit allocation. Chelsea wants to take the matter to the People’s Court; John wants to go to arbitration while both their families suggest that they work it out through mediation. Compare mediation, arbitration and litigation and advise them on the best method for dispute resolution.

Question 4 (Word limit: 1,000 words)
China is a country that celebrates hard work and success in business. To be successful, companies face enormous competition to get to the top and stay there. Effective corporate governance plays an important role in helping companies to survive and thrive in an increasingly competitive environment. Chinese regulatory bodies have made considerable efforts to improve the corporate governance of listed companies. However, corporate governance in practice is still problematic. What are the major corporate governance problems and enforcement issues faced by Chinese listed companies? Why is it difficult to solve these problems? What are your own suggestions for making corporate governance more effective in China?

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