Sons and Daughters: Guanxi as a Double-Edged Sword
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Publication Date:
March 14, 2019
Source:
The Hong Kong University of Science and Technology
Guanxi, political connections in China, can provide unique competitive advantages, but can expose business leaders to regulatory and political risks in the region. The fictional case focuses on how U.S. banks in Hong Kong, a major financial center for the Chinese market, are pinned upon the horns of a dilemma. Banks can abide by the letter of the law and not win any business; alternatively, they can break the law, in spirit if not actually the letter, and win business at the cost of incurring legal jeopardy and possibly violating one’s own sense of morality by hiring the children of well-connected senior management of a Chinese business who can direct substantial mandates to the employers.
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Sons and Daughters: Guanxi as a Double-Edged Sword
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