...China is not the only fast-growing economy that is making waves around the world. ICT in China’s current economic growth rate is approximately 9 percent annually, which is impressive economically. Its contribution to global GDP growth since 2000 has been almost twice as large as that of the next three biggest emerging economies (India, Brazil and Russia) combined. Some even refer to China as the mother of emerging markets and transition economies. China joined the World Trade Organization towards the end of 2001. It has also been experiencing a long period of steady economic growth and was chosen to host the 2008 Olympic Games. Although there is still a huge gap between China and developed countries in the development of the ICT industry, the astonishing pace of its progress shows promise for the country’s New Economy. There are empirical evidences in recent years on China’s ICT industry development and diffusion. Indeed, The ICT industry is becoming the most dynamic sector in China’s economy. However, a clear digital divide among the nation’s economic regions is foreseen. Information and communication technologies (ICT) are therefore playing an increasingly central role in today's China. In just a few years, China has become the country in the world offering the most attractive market perspectives for most ICT products and services, thus making ICT a key focus for cooperation between the European Union, China, and other nations. China's domestic ICT industry will be strong...
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...Analysis of the emerging market in China Introduction Nowadays, with the financial crisis sweeping the globe, the emerging market is to be concerned by more and more countries. China as one of BRICs country has an impact on economic, trade and political in the world. This paper will talk about the emerging market--China from some economic factors, social factors and political factors, also analysis why China play an important role in the world. And what is the relationship between China and the international environment? Global overview and introduction to China When China awakes, it will shake the world. -- Napoleon Bonaparte The people's republic of China (PRC) which located in east Asia continent, and on the western shore of Pacific Ocean, which is the third largest country with 9,596,960 square kilometres. With the vast land, the land boundary of some 22.800 kilometers also have many neighbor such as Russia, North Korea, Vietnam, Laos, Pakistan, Afghanistan, Nepal, Tajikistan, Mongolia. At the same time, the mainland coastline measures about 18,000 kilometers with a flat topography, and there are many excellent docks and harbours, most of them are ice-free all year round (Jinyan, 2005). Most place of China all belong to the north temperature zone. Clear for seasons which suit for people to habitat. In addition as a big country with a vast territory, the nature...
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...How has China managed to promote its stature in the international financial market? The environmental analysis for the development of China’s international financial market 1.1 Enabling environment: The rapid rise in emerging markets. It changes the structure of global economic strength. On multiple economic and financial indicators, emerging countries can rank into the top 10, and they can challenged the developed countries on aspect of the international financial governance and international financial rules in international financial system. For instance, In 2010, the economic growth of emerging markets took up 72% to world economic growth, and among them, the BRIC is up to 49.1%. The international rankings of main economic indicators(2012) |Ranking |Nominal GDP |Purchasing power |Total volume of trade |Total foreign reserves | | | |parity(PPP) | | | |1 |USA |USA |USA |China | |2 |China |China |China |Japan | |3 |Japan |India |Germany |Eurozone | |4 |Germany |Japan |Japan |Saudi Arabia ...
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...Asia Pacific J Manage (2008) 25:667–683 DOI 10.1007/s10490-007-9073-0 A strategic analysis of surging Chinese manufacturers: The case of Galanz Gloria L. Ge & Daniel Z. Ding Published online: 10 November 2007 # Springer Science + Business Media, LLC 2007 Abstract Recent years have witnessed the surging of Chinese manufacturers, as China has become the world’s factory floor. This paper presents a case study of one of the most successful manufacturers in China, the Galanz Group, now the world’s largest microwave manufacturer. Based on theories of multinational corporations from emerging economies, the paper examines the process of Galanz’s integration into the global market. The company has developed unique competitive strategies that have made it a great success within China and in overseas markets. The Galanz model suggests strong strategic implications for both Chinese firms and incumbent multinational corporations. Keywords Chinese manufacturers . Strategic analysis . Internationalization . Galanz In the last two decades, China has maintained an average annual growth rate above 7%. China is rising as one of the world’s largest economies and trading powers. As China becomes the world’s manufacturing floor, the competitiveness of Chinese manufacturers and their impacts have emerged as a hot topic. China’s manufacturing output now ranks third in the world only behind the United States and Japan, after overtaking Germany in 2003 (China Daily 2005). Many Chinese manufacturers...
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...CASE INSIGHT ANALYSIS I The Business Environment of China: Challenges of an Emerging Economic Superpower The most important issue in this case This case provides a brief history of China and explores China’s current status in the global business environment. Throughout the reform of political structure and the economic system, the development of China was impressive. However, the potential problems due to the reform also surfaced and became the inevitable challenges of the continuous development of China. The case focuses upon an analysis of the significant challenges faced by China in society and culture, markets, technology and institutions. First, challenges in society and culture. Although China was still a comparatively young country (with a median age of 30), China’s huge population determines some of the inevitable problems during the country development. China was one of the world’s most rapidly aging nations by consequence of the country’s “one child” policy. More elderly dependents than children also cause problems in health care and retirement. The poverty and income were not equal in society. People in China still face the problems of discrimination and corruption. Second, challenges in markets. In product and service markets, local companies were often not pushed to produce high-quality products that would be competitive in the global arena. In factor markets, the size of China’s workforce and the corresponding availability of low-cost workers meanwhile caused...
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...country’ problem before it becomes the world’s largest economy . A big part of Fareed’s focus in this article is about China’s challenges likes debt, pollution and corruption. In this article showed how China’s financial crisis and the global economy slowdown based on it’s economic imbalances . The basic economy’s problem is that for almost a decade, China's economic growth has been fueled by cheap credit and government spending--a classic developing-nation problem .The country’s total debt level was estimated at 215% of GDP in 2013.Besides financial problem, China also have serious challenges in environment. Air and water pollution has become a major public health issue in the country.The last challenges in 2014 is the corruption’s problem ,it seriously increasing among the Communist Party. According to this article, China’s president has launched an anticorruption campaign for this unethical problem . In closing, Fareed Zakaria says that ,he not ready to bet against China if China’s leader did not manage this transition well.If China’s leaders manage this transition well.the country will emerge stronger and more stable and become the largest economy in the world. INTRODUCTION International business is much more complicated than domestic business because countries differ in many ways. (Charles W.L.Hill, 2013) .China has become the world's second largest economy, with Japan surrendering its 42-year-old ranking after its economy shrank in the final months of 2010 (Moore, 2011)...
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...Minister to Pakistan from 22 to 23 May 2013, China proposed a ‘China-Pakistan Economic Corridor’ (CPEC or C-PEC) to connect Kashgar in China’s Xinjiang...
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...industries such as steel, iron, aluminum, glass, plastics, glass, carpeting, textiles, computer chips, and rubber are some examples of jobs created indirectly by the Automobile Industry. Environmental Scanning of Current Conditions China assembled 25% of the world’s cars in 2012, keep in mind that this is 7 million more cars than Japan (second largest car manufacturer in the world). Its industry growth has been mainly motivated by business friendly policies created by the government, increase in domestic demand, and an emerging middle class. Although this industry has grown lately, it continues to remain dreadfully divided. Furthermore, government officials believe that surplus volume must come to a halt and worry about local government departments impairing the economy due to unrestrained expansions. Therefore, they are aiming for more M&A (mergers and acquisitions) in this industry, which inadvertently will create prominent domestic enterprises. China’s crucial challenges to compete internationally are poor innovation, a feeble R&D, and dire design competences. To perfect engineering abilities, expedite technology transfer, and enrich design the government persuaded local companies to opt for strategic...
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...China from an Emerging Economy to a Global Powerhouse James R. Barth, Gerard Caprio Jr., and Triphon Phumiwasana Abstract Throughout the past three decades of fast growth, China has undergone tremendous structural changes in its economy and financial system. This chapter examines China’s evolving financial landscape so as to assess whether it can catch up with or even drive economic growth. China has achieved remarkable growth over the past quarter of a century despite a relatively inefficient financial system. Just as the public sector around the world has not proved to be an efficient manager of enterprises, it also has not been an efficient manager of banks. A solution that would seem to work in theory would be to grow the private sector’s role in the banking system, using banks that operate on market principles as a way to continually starve inefficient enterprises of credit, while supplying credit to the productive enterprises. Finding a way to make this work in practice will require both finesse and good fortune on a scale commensurate with China’s growing importance in the world economy. Keywords Bank Á Banking sector Á Financial market Á Big Four Á GDP Á Economic growth Á Financial system Á Trade Á Renminbi Á Exchange rate Á India Á Foreign exchange reserve Á Non-performing loan 1 Introduction China has captured the attention of the world with its unprecedented growth for such a big country during the past 30 years. At an average rate of 9.7%, China’s GDP has grown...
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...As the world economy moves towards globalization, China has become more open to trade with other countries. Its international trade volume had risen from US$20.6 in 1978 to US$1,422 billion in 2005 (Wang & Liu, 2007). Since China’s exports mainly focus on the labor intensive and resource intensive industries, this exports pattern causes a serious environmental problem in China. Green barriers become a kind of emerging non-tariff barrier which is used for the developed countries to protect their production and economic development in recent years. The main forms of green barriers include green tariff and market access, green packaging and labeling requirements, green technology standards, Green health inspection system, environmental costs and green subsidy system (China west products, 2011). China’s agricultural, mechanical and electrical products are all facing green barriers, such as pollution, noise, safety standards and recycling requirements (Wang & Liu, 2007). How to cope with green barriers becomes the biggest challenge that China faces to continuously expand its exports. The purpose of this paper is to address and analyze the green barrier issue in China and to provide my ideas and suggestions on China’s exports related to green barrier. My following analysis is mainly based on the positive effects of green barriers and the specific example of China’s tea exports as well as three policies to cope with green barriers. I feel confident that you will strongly support my...
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...Introduction As the world economy moves towards globalization, China has become more open to trade with other countries. Its international trade volume had risen from US$20.6 in 1978 to US$1,422 billion in 2005 (Wang & Liu, 2007). Since China’s exports mainly focus on the labor intensive and resource intensive industries, this exports pattern causes a serious environmental problem in China. Green barriers become a kind of emerging non-tariff barrier which is used for the developed countries to protect their production and economic development in recent years. The main forms of green barriers include green tariff and market access, green packaging and labeling requirements, green technology standards, Green health inspection system, environmental costs and green subsidy system (China west products, 2011). China’s agricultural, mechanical and electrical products are all facing green barriers, such as pollution, noise, safety standards and recycling requirements (Wang & Liu, 2007). How to cope with green barriers becomes the biggest challenge that China faces to continuously expand its exports. The purpose of this paper is to address and analyze the green barrier issue in China and to provide my ideas and suggestions on China’s exports related to green barrier. My following analysis is mainly based on the positive effects of green barriers and the specific example of China’s tea exports as well as three policies to cope with green barriers. I feel confident that you will strongly...
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...1. Conduct a PESTEL analysis of China 1.1 Political Analysis China is well-known as one of only five communist nations left in the world, which determined its socialistic ideology and government are different from most countries all over the world. As claimed, china is an investment-welcomed nation since joined WTO in 2001. Leaders of China are also trying to build an open and comfortable environment to foreign investment. The influx of Foreign Direct Investment in China is increasing steady from 2007 and China has been the second largest nation of accepting FDI. (see Exhibit below) Wine has always been seen as a luxurious good in domestic market, so wine importation got a strict duty policy as duty of 14%, add-value tax of 17% and consumption tax of 10%. However, as more and more competition in international trade market, New Zealand has got zero-duty privilege in wine importation industry from China government, followed by Chile and Australia, who will get zero-duty privilege in 2015 and 2019 respectively. Although Chinese politics is stable relatively, there still are some issues like crime and corruption. In 2013, Xi Jinping took power from Hu Jingtao as present president of China and paid more attention to those issues in period of social transition. 1.2 Economic Analysis China’s economy had seen a rapid growth in these years, which was benefit from decreasing intervention and increasing market oriented. The first 20 years in 21 century are very important...
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...works in cooperation along this supply chain. Meanwhile, globalization is bringing a set of globalized values to every corner of the world. Indeed, the world seems like a truly fair playing ground. However, in my view, the world is just far from being flat. The world is in a huge imbalance. Due to the comparative advantage of labor between developing countries and developed countries, the world capital is flowing from the US and European countries which have high labor cost to emerging economies like China and India where there are abundant supply of cheap and skilled labor. On one hand, China and the other emerging economies are accelerating their integration into the interdependence world factory. Gaps in living standards, wage and technology are quickly shrinking. The benefits of economic boom are spreading from those advanced economies to emerging economies. On the other hand, this economic model results in huge trade imbalance and further solidifies the dominance of the developed economies on the upper end of the value chain. To sustain the high annual growth rate, China has to rely on its export-oriented economic model, which caused huge trade surplus and over-supply of currency. Such...
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...points of discussion that have been used within this journal are situated around hot topics within the unit. They are all in reference to International Business Theory such as trade, international investment, financial markets, legal or political systems and international regulatory bodies and relationships. The main point behind this project is to show the connection between the greater global economy and the individual economies that operate within it. The world today is a place where barriers are constantly being broken down, trade and regional agreements are becoming a must, and where countries and organisations really have to think about the greater consequences of their own actions. During class discussion, as a group we have learnt how vital it is to know not only the international identification of a country but its characteristics when operating on an international basis. Such characteristics include countries relevance in the global economy, its political and legal system, its ethics related to business practices, and its financial situation and stability. An understanding of emerging markets, international trade investment, and regional economic integration have also been topics for discussion. Regional trade relationships such as the ASEAN have many advantages, however more defined relationships such...
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...For multinationals attempting to gain significant market share, the risks now outweigh the awards in China China, one of the largest economies in the world at 7.5% is continuing to grow and the population is forecast to rise higher than ever before which is a recipe for high rewards both in both the short and long term. However, using the PESTLE analysis, multinationals will understand that the environment in China is constantly changing and the risks are significantly increasing for multinationals such as wage increases which are higher than ever which is affecting the market share of some businesses due to increased costs. However businesses have to decide whether China is too big of an opportunity for them to ignore. Given the size of the Chinese economy, global brands can’t afford not to be in China in order to compete with domestic businesses in China and foreign businesses. In order to gain significant market share businesses compete by negotiating with suppliers to get the lowest costs and by increasing the demand of their products in order to achieve high revenues, ultimately leading to higher profits. However, this is increasingly becoming riskier and harder for multinationals due to rising production costs and higher wages in order to try and maintain high levels of economic growth. Foreign businesses offshore their production to China due to their low labour costs and high productivity, however China is ceasing to become a labour surplus country which is becoming...
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