For many global companies China represents a veryattractive market in terms of s

For many global companies China represents a veryattractive market in terms of size and growth rate. Yet it rankslower in terms of economic freedom and higher in political riskthan other countries markets because it has a communistgovernment. Despite these risks many popular and reputablecompanies have established manufacturing operations inChina.This is largely because the Chinese government makessales in China contingent on a companys willingness to locateproduction there. The government wants Chinese companies to learnmodern management skills from other international companies andacquire technology. Some observers believe that when Westerncompanies agree to such conditions they are bargaining awayimportant industry knowledge in exchange for short-termsales.Answer the following questions based on the situationdescribed:Should companies comply with Chinasterms?Should they risk losing sales by refusing to transfertechnology?