The Goal of Every Business
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The goal of every business is to earn money. Actually, one quarter of Brazil people who cannot drink very clean water do not have the ability of affording foreign water. Laoshan Mineral Spring Water will lose our characteristic if we give up producing it in Qingdao, even though Brazil has lots of great water resource. After an 18801 kilometer travel across the Pacific Ocean, the price of our Spring water would be great high in order to earn money. This absolutely declines the competitive of Laoshan because the weak poor people cannot afford this high price and rich people dont have to drink our product with a high price.
In Russia, the economic growth decelerated sharply. The GDP of Russia increase only about 1.5 % in the whole 2013, while manufacturing output contracted over most of the year. The result is expenditures amounted to just 1.7% of GDP and only 9% of companies in Russia are technological innovators. The lack of incentives for R&D means that most companies prefer to import new technology, making it new only to Russia. But Russias Purchasing Power parity and GDP per capita are still pretty high. So I think that is why Unilever is trying to sell High-end products because Russias manufacturing need new product to stimulate the market. (Moodys Analytics, 2014)