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Their entry into the Chinese market resulted in big profits and high potential for future growth. However, in 1998 the Chinese Government declared a ban on direct selling which threatened a substantial market for Amway. The reason the Chinese government decided to prohibit direct selling is because they believed Amway's direct-selling techniques could spread heretical religion and the start of secret societies. Chinese officials believed the ban was totally necessary because Amway's distribution and marketing policies were indicative of illegal activities.
The original intent of Amway's founders was to create a business using a novel means of product distribution that facilitates entrepreneurialism, understanding of economic management, and economic independence among its associates (i...
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