QuestionQuestion 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?

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