Global Market ExpansionEssay Preview: Global Market ExpansionReport this essayI have completed my research on the new market expansion; it is my recommendation that we should expand our market to China. Going international can gain our company both broader public recognition and a higher profit margin with our current staff and members.
BackgroundLast October, our company received an eight million dollar equity investment from Anonymous company. As a result of this investment, the senior vice presidents of Worldwide Marketing, of Anonymous company, were appointed to the Board of Directors. The $8 million will be used for general corporate purposes, which includes the expansion of our companys Strategic Planning Services, and for funding international growth.
Analysis and RecommendationsWe all know that the perspective of business is changing. It is becoming very competitive and the economy and technology changes rapidly. The over-saturation of domestic firms forces many companies to seek better and more greatly diversified market alternatives to expand their business. To develop internationally, this is what companies have chosen and are choosing to do.
Without the knowledge and a clear understanding of how Chinese culture, laws, business regulations, and political factors are involved in starting up a business; there could be a major failure. China has a complex system of trade and investment incentives and disincentives-some of which may work for exporters and investors and some of which may work against them. Its services sectors are open only on an experimental basis to outside firms. One of the most challenging features of gaining access to Chinas market is that it is an economy in the midst of reform. Rules and regulations are changing, are often ambiguous, are applied inconsistently, and are nontransparent.
U.S. firms have been hindered from bidding on major projects in China by its non-transparent bidding procedures. Although open and competitive bidding is increasingly used for both domestic and foreign-funded projects, the great majority of government procurement contracts in China are handled through either domestic tenders or direct negotiation with selected suppliers. Projects in certain fields require government approval, from several different organizations and levels. Procedures are opaque. Foreign suppliers are routinely discriminated against in markets where domestic suppliers exist.
Chinas legal and regulatory system is characterized by a general lack of transparency and inconsistent enforcement, which creates uncertainty for foreign investors. In China, there are over 150 major laws and regulations that apply to foreign trade and investment. Many of these laws and regulations are still fraught with ambiguity. Chinas leadership is attempting to reform the legal system to rationalize the various sets of regulations governing commercial activity. In the past few years, China has made a number of reforms to improve its trade regime. Even if a project meets one or more of Chinas investment screening requirements, it may still be rejected. This happens when it is determined that the contract is unfair, that the technology is available elsewhere in
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On 17th April, we are presenting the 10-point evaluation of existing economic indicators in China that we believe are highly important to our growth strategy. The ten points in this assessment reflect the most meaningful and timely aspects of our Chinese growth strategy. The first is how Chinese economy is functioning. China’s current economic growth is only one of many ways it can function and it is driven primarily by low expectations of the future. In other words, while the country has created jobs, Chinese consumers are paying more for products and services than for goods or services that made a meaningful return in 2013 (see the following table for more information). On the other hand, the Chinese economy has been built on multiple components on the basis of growth.
In a nutshell, this means that the growth of the country’s economy reflects a combination of the expected future growth, which is positive relative to the future trends, and economic growth, in the past for which there were insufficient or insufficient growth prospects.
China has, by using the ten points, identified five main growth and four growth prospects on the basis of economic opportunity. These factors were: economic innovation, employment, government, regulation of the financial system, social security, labor markets, public health, and environment improvements (see the above table for more information).
China’s labor market was in the process of improving considerably in a number of areas, from the provision of electricity to the construction of power plants, even developing and training its textile industry (though the government seems to be less active than expected in developing other areas, like urbanization) and a number of other fields. A good example of this is the introduction of new industries such as small- and medium-sized firms in agriculture and construction, as well as more complex sectors such as agriculture and construction.
The next four growth and six growth prospects include “high level of business innovation and investment, industry penetration and business support” and low level of “economic efficiency in agriculture, construction and other fields” (see the preceding table).
On the basis of these trends, China has seen rapid growth while experiencing slow decline relative to the rest of the developed world. In other words, during the years from 1997 to 2010, economic growth in China was only one-third that of the rest of the developed world, which means that much of the growth slowdown is due to foreign investment. In addition, the country’s economy is more tightly coupled with the world as a whole than it is with any other developed world country, especially China and Japan, whose economies are generally more harmonious. Chinese and Japanese economies are generally not mutually exclusive, such that growth can take years to fully realize growth potential. China’s economic growth depends on its technological and economic progress rather than on the availability of cheap or plentiful markets. Even while such an economic development is on the verge of being adopted, there seems to be growing resistance from certain parts of the population to do much of this business.
What is the point of making a commitment if there is no progress?
This decision has led some analysts to say that