China Economical Expansion

In: Social Issues

Submitted By dziewczyna
Words 326
Pages 2
Chinese Economic Expansion

Recent years in all countries the products of China’s industry are commonly used; electronic devices, toys, textile, products are some of them. Until very near future China was not well known by people; although it had an important position in the global economy. For hundreds of years the general policy of China had aimed protecting its culture, so it tried to avoid improving relationships with foreign countries. For centuries China have had pure culture. But after the communist regime in China, there occurred lots of policy change especially in economy. Till 1949, China was trying to feed only its own nation, the productivity is sufficient for itself; afterwards China speed up its productivity. That is surprising for the rest of the world. In lots of sectors China’s products start to be sold; so everyone think about an important question:

“How did China develop so rapidly?”

The answer is not single because development requires a continuous and successive process. Through this process China have passed some stages successfully, one of these stages is political reforms and as a result economic reforms. In order to better understand the success of Chinese economy today first the process of political development that China has passed through should be analysed. *Teng-hui (1995) reports the political reforms of China from 1930’s till 1990’s.For two thousand years China was administrated by an emperor. It did not have a democratic regime. Between 1937 and 1945 there had been a war against Japan and after that the Chinese Communist Party revolted. In 1948 ROC (republic of China) developed formally the Temporary Provisions Effective During the Period of Communist Rebellion. The following year Taiwan was located again by ROC. Due to the threats of Communism the Temporary Provisions standed for 43 years till 1991. The rights given to people…...

Similar Documents

Infosys in China: Global Expansion Strategy

...generated revenue of US$ 2 billion in 2006 (Rustogi et al, 2012), and gain more than two third of its revenues from serving many clients in the United states (Dajiworld, 2007), the company success to develop scalable strategy, and create a successful organization has a global brand awareness for quality and efficiency . The report illustrate Infosys expansions plans and strategies in China and summarizing the factors influenced Infosys to establish offshore development center in China, to benefit from the advantages of the low labor cost and the great economic opportunities to have the largest second development center in China, as well analyze the Global Delivery Model of Infosys and its relevance to China, in addition to indentify the major challenges face the Indian IT companies operating in China, and propose solutions to conquer those problems. Table of Contents Background 5 Issue Statemnt 5 Literateur : Factors influenced global expansion strategy 5 Analysis of the problem : Global Delivery Model of Infosys 6 Alternatives Analysis and Selection Criteria : Development Challenges in China 7 Recommendations 9 Action and Implementation Plan 10 References 12-15 Appendix 16 List of Tables and Figures Table 1 –Infosys Ranking. 17 Table 2 – Infosys SWOT analysis 18 Background Infosys Technologies Limited is IT Solution company founded by Indian software......

Words: 2878 - Pages: 12

L'Oreal Expansion in China Case Study Report

...Introduction This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges. Background L’Oreal’s background The French company L’Oreal is a giant in cosmetics market that founded in 1907 by Eugene Schueller. The earliest success for L’Oreal is because it got the first hair color formula and then expanded into the field of shampoo and soaps. From the very beginning, L’Oreal decided to export its product to other countries such as Holland, Italy and so on. It entered the US market at 1953. Schueller was died in 1957 and Francois Dalle replaces his post. Although the boss has been change but L’Oreal expanded into overseas markets continuity. In 2004, L’Oreal had 52,000 employees over the world and portfolio of 17 international brands. As shown in the L’Oreal group annual report, the largest market for L’Oreal is still......

Words: 1444 - Pages: 6

Wal-Mart Foreign Expansion

...since adding new stores (i.e., new capacity) will only intensify an already high degree of local competition. Second, because there are significant income and cultural similarities between the United States and Canadian markets, Wal-Mart faced relatively little need for new learning. Thus, entering through a strategic alliance was unnecessary. Third, a poorly performing player, Woolco, was available for purchase at an economical price. Furthermore, Wal-Mart's business model was precisely what Woolco needed to transform itself into a viable and healthy organization. For its entry into Mexico, Wal-Mart took a different route. Because there are significant income and cultural differences between the United States and Mexican markets about which the company needed to learn, and to which it needed to tailor its operations, the local market requirements would have made a startup problematic. So, the company chose to form a 50-50 joint venture with Cifra, Mexico's largest retailer, counting on Cifra to provide operational expertise in the Mexican market. For further expansion in Latin America, Wal-Mart targeted the region's next two largest markets: Brazil and Argentina. The entry into Brazil was also accomplished through a joint venture - with Lojas Americana, a local retailer. But Wal-Mart was now able to leverage its learning from the Mexican experience and chose to establish a 60-40 joint venture in which it had the controlling stake. The entry into Brazil gave Wal-Mart even......

Words: 2169 - Pages: 9

International Expansion

...International Expansion Elena Popova Professor Steven Englehart International Business Strategy 10/27/2013 Strayer University 1. Develop a revised international product life cycle plan As the global economy continues to stumble, retailers are struggling to achieve growth domestically. While there are pockets of opportunity, many retail sectors in the United States are saturated and not expected to grow much, if at all. Growth may be heavily dependent on winning share from competitors, typically a taxing effort. Consequently, many retailers are looking beyond their borders for potential growth. Foreign markets offer attractive growth rates fueled by burgeoning middle classes, lower competitive intensity, and greater pricing flexibility. Additionally, a global presence may help retailers lessen their risk exposure to an economic downturn in any one market. Every brand or product has its life cycle which spans from the time it is launched to the time it exits from the market. This cycle covers four stages, introduction, growth, maturity and decline. The life cycle of each and every brand or product is different, and different advertising strategies should be adopted at different stages to suit the marketing targets and market environment in order to achieve the best marketing results. The first stage in a product’s life cycle is the introduction stageintroduction stageThe first stage of the product life cycle after a product is launched.. The introduction stage...

Words: 2056 - Pages: 9

Territorial Expansion

...The United States’ territorial expansion inadvertently contributed to the eradication of the institutionalization of slavery. The gradual process of Westward expansion amplified the economic and political rift between White Northerners and Southerners. Following the Revolutionary War, white Northerners and Southerners alike were content with their respective economic systems. However, the seemingly perpetual acquisitions of territories repeatedly ignited a national debate; with each region interested in protecting their economical and political systems respectively. The United States first expanded with The Northwest Ordinance of 1787. The Northwest Ordinance established the Northwest Territory—the states of Illinois, Indiana, Michigan, Ohio, and Wisconsin. More importantly, this legislation outlawed slavery north of the Ohio River. In 1803, the United States acquired the Louisiana Purchase—ironically, as a direct result of a slave revolt in Haiti—from France. The Louisiana Purchase would spark the first national political debate. As settlers began to move into the Louisiana territory, the issue of slavery arose. A territory could apply for statehood after it reached 60,000 settlers. In 1819, Missouri applied for statehood, entering the Union as a slave state. This enraged White Northerners. The admittance of Missouri gave the slave holding states the majority in the Senate; foreshadowing, that future political policies, would favor the Southern economic system—slavery.......

Words: 662 - Pages: 3


...why China is unique: 1. Population: The population of China is 1,321,290,000 and it is the most populated country in planet earth followed by India. 2. Due to this high population the People’s Republic of China is the only country that has introduced the one child policy to control the high amount of births. The policy allows many exceptions: rural families can have a second child if the first child is a girl or is disabled, and ethnic minorities are exempt. 3. China is the great economic success story of the past decade 4. Adapting to its rise will pose a challenge to the political, economic and even moral bases of the current international order. It will have an impact on the security architecture of Asia and the Far East, the so called China Effect. 5. Chinese growth is built on a unique but unsustainable model- impossible high levels of export growth largely driven by assembling half- completed imported goods, state driven capital accumulation and cheap labor with very low productivity, little technical innovation and the absence of an appropriate business culture or legal structure. 6. World’s largest exporter: China's exports rose at an annual rate of 7.9% in 2013, while imports grew 7.3%. 7. In 2012 83 million mainland Chinese spent $102 billion abroad overtaking Americans and Germans -making them the world’s biggest tourism spenders according to UN World Tourism Organization. Reasons why China is unusual: 1. Despite a phenomenal expansion of......

Words: 409 - Pages: 2

Online Expansion Proposal

...state wide and one day internationally. Sales have remained steady, but there is evidence that the company may be able to increase revenue by adding an online operation. This relatively inexpensive form of expansion will also serve as a form of advertisement to new potential customers (Belew & Elad, 2009). Currently the only advertisement used is word of mouth and positive customer reviews posted online. While this form of advertisement can create a positive image for the company, it can also be relatively limited in the area it reaches. It also doesn’t provide a way for Coal Mine Dragon Chinese to respond to customer input in a timely manner. Creating an online operation will allow many different people to learn about the company as well as give new and current customers the opportunity to view the menu ahead of time, order online for delivery or for faster pick up. While sales would remain relatively local initially this would open up the door to those in the area who have not heard of the company, those who do not have time to sit for a meal in the establishment or those who are not able to leave their homes and would prefer to order online. It is also an inexpensive step in the direction of achieving the long term goal of statewide and international expansion. As well as provide an effective means of communication between business and consumer. Overall these are all advantages to going online that would greatly benefit Coal Mine Dragon Chinese. One of the......

Words: 6490 - Pages: 26

China Unbalanced

...STUDY CHINA “UNBALANCED” In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy. We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction with its principal economical partners .. We will conclude our analysis by outlining some of the problems associated with China’s growth strategy and the missing components that would be needed in order to become a free economy and to achieve sustainable growth in the future. During the time of Mao Zedong’s term in power, China was a communist state that had a closed economy, a population of just fewer than one billion and state-owned companies that were financially unsuccessful and a drain on the economy. The choice of economic systems is based on the belief that the system will bring the highest goods to the majority of the people, most of the time. Mao Zedong adopted a Chinese nationalist and anti-imperialist outlook with which he ruled......

Words: 3703 - Pages: 15

Global Expansion: China

...Methodology The primary goal of a risk management plan is to understand what risks the project will be exposed to. The Project team supports the premise that “risk management goals and objectives should be consistent with and supportive of the enterprise’s business objectives and strategies.” Therefore, the risk management plan associated with this expansion utilizes the company’s vision and strategic objectives as its foundation. The risk management plan was developed with the goal of assisting the organization in improving its current capacity to identify, prioritize, and respond to the risks associated with the expansion in to China. As previously stated the primary objective of the risk management plan is to increase the organization’s understanding of the risk associated with this expansion project. In order to effectively utilize risk management the risk management plan must develop a “common understanding” of these risks. The benefits of a common understanding of risk across the organization structure are numerous. For instance, the risk management plan will help to achieve cost savings through better control of both internal and external resources. One way this control will be realized is by developing safeguards that impact the organization’s earnings. This cost savings then makes it possible for the organization to allocate capital more efficiently. Development of the risk management plan utilized the project’s Scope Statement, Cost, Schedule, and......

Words: 889 - Pages: 4

The Cheesecake Factory Expansion in China

... 3  4‐  Global Outlook & Analyzing Regions  3  5‐  Regions' GDP% (Annual Growth)  4  6‐  Global Consumer Demand  5  7‐  Global Competitiveness   5  8‐  Target Country : China (Shanghai)  6    A‐ Economic Growth (GDP%)  6    B‐ Disposable Income  7    C‐ Consumer Behavior  7    D‐ Technology  7  9‐  Risk Factors  8  10‐  Recommendations  8    References  9    Appendices :  11    Appendix 1 : SWOT Analysis for  Chinese Market  11    Appendix 2 : PESTLE Analysis  12    Appendix 3 : Useful Charts and  Diagrams  13   1   1‐......

Words: 4495 - Pages: 18


...International Business China’s Economy My interest in China originated from their current economic standing. I find China’s position in the world economy very interesting because this is the most interdependent country. The recent stunt in their economy’s growth highly affected other countries markets, including America. This is a representation of how deeply rooted China’s economical presence is around the globe. China’s economic stance has drastically changed within the past 50-60 years. Up until 1949 China was known as Republic of China, but after the civil war the Communist Party of China took control and the People’s Republic of China took place. Under this rule China was known as a very strong centrally planned government. However, after Mao’s death in 1976 the new ruling government decided to move the country into a free market economy. The Chinese government implemented agriculture and commerce reforms in order to quickly increase trade. Within the last 40 years, China’s decision to become a free market economy has rapidly increased the country’s GDP. Part of the reason for this increase is due to China’s extreme work ethic. According to Geert Hofstede’s study, China’s masculinity is ranked at 66%; this means that the Chinese would prefer to work in extensive jobs that allow them to make a better living rather than work in a job that is for pleasure and low pay. This ranking represents the culture’s hunger and ambition for success. This mentality plus its......

Words: 551 - Pages: 3


...Expansion & Diversification Presented by Case Background Carlsberg Incorporated in 1969. Came to Malaysia after two years incorporated through brewing Carlsberg Green Label beer for Malaysian Market. Carlsberg Brewery Malaysia Bhd (Carlsberg) market leading company that hold 50% shares of beer and stout market. Owned by the Carlsberg Group of Denmark. Cont... Carlsberg Malaysia Sdn. Bhd. one of the subsidiary that wholly owned become main marketed locally product. Carlsberg enter into many investment and acquisition through all the years. Competitor in the same industry Guinness Anchor Bhd. Case Background ABC Consulting Sdn Bhd Consist of David as one of the consultant and Robert Stanley as a Head of the company. Specialised in business turnaround. Mr. Stanley suggested that the company to focus more on cash-rich company that want to expand, diversify or venture. David grab the opportunity by looking beer and stout company and found that Carlsberg Company as a target. Cont... By looking through Carlsberg position, David feels that expanding is not worth it and cannot able to sustained their profit. He prepared himself with information before approaching Calrsberg company regarding the diversification activities. Also take and opportunity by selling his idea of manucfacturing sparkle grape juice (halal product) once the Carlsberg company tend to choose to diverse by taking Guinness as an example. ABANG MUHAMAD ZAIM BIN ABANG ALI......

Words: 981 - Pages: 4


...benefits of doing this for China? What were the costs? 1. The U.S. dollar was the strongest in the global market. The benefits for China were that their yuan would stay weak, their exports would remain cheap, and their economy would thrive on production for the U.S. economy. The costs for China were that they had to exchange for U.S. dollars every month and that their exchange was the U.S. deficit. 2. Over the last decade, many foreign firms have invested in China and used their Chinese factories to produce goods for export. If the yuan is allowed to float freely against the U.S. dollar on the foreign exchange markets and appreciates in value, how might this affect the fortunes of those enterprises? 2. The enterprises would have to pay the factory workers more money. It might not be worth exporting the labor. 3. How might a decision to let the yuan float freely affect future foreign direct investment flows into China? 3. China’s FDI would suffer because countries would no longer hire out China’s laborers. China would lose working contracts because country’s domestic labor would become more economical. 4. Under what circumstances might a decision to let the yuan float freely destabilize the Chinese economy? What might the global implications of this be? 4. The whole idea of keeping the yuan low in value on the global market is so that countries would buy China’s exports. This kept the Chinese economy thriving. If China no longer provided......

Words: 492 - Pages: 2

Describe the Changing Economic Variables in China That Influenced Mcdonald’s Expansion Strategies.

...Assignment 5 Valerie Lagana Strayer University Eco550 – Economics for Managers September 5, 2011 Question: Describe the changing economic variables in China that influenced McDonald’s expansion strategies. The main changing economic variables in China that influenced McDonald’s Expansion were the increase in GDP and the economic stimulus package. In 2007, the increase in GDP showed a level of strong jobs in China as well as increase income for the Chinese (Farnham, 2010). This allowed the Chinese to spend more money on eating out at restaurants which gave McDonald’s a great opportunity for expansion. In addition, the Chinese government had a stimulus package after the economy dropped in 2008. The stimulus package included building more highways which allowed the Chinese to be accessible to the drive through window opportunity that McDonalds was able to offer as part of their expansion. Question: What factors led to the Mexican currency crisis and peso devaluation in 1994? The factors that led to the Mexican currency crisis and peso devaluation were the Appreciation of the exchange rate, falling interest rates, and the foreign savings. The appreciation of the exchange rate resulted in a decrease in savings with an increase in investment due to the expansion of credit without any federal regulations (Farnham, 2010). The falling interest rates were a result of the appreciation of the exchange rate attracting private capital via privatization of banks and free......

Words: 289 - Pages: 2

Ikea - Case Study Expansion Into China and Japan

...Introduction to the case 2 2 Critically and systematically analyse the global strategic advantages of IKEA 3 2.1 Branding , designer appeal 3 2.2 Critical mass, low cost, low price 3 2.3 Quality, green credentials 3 2.4 Global appeal, local sensitivity 3 3 What were the key challenges that IKEA faced in a) China and b) Japan? 4 3.1 Key challenges faced by IKEA in China 4 3.1.1 Cultural 4 3.1.2 Structural 4 3.2 Key challenges faced by IKEA in Japan 4 4 Critically discuss the marketing strategies used to address the challenges the company faced in China and in other markets. 6 4.1 China 6 4.2 Other markets 7 5 Discuss and justify what IKEA’s marketing strategies should be in the future in these two markets. 8 5.1 China 8 5.2 Japan 8 6 Conclusions 9 7 Bibliography 10 1 Introduction to the case From humble origins in the woods of Sweden in 1926, IKEA has developed into a major retail experience in 41 countries / territories around the world, with a current turnover of €23.1 Billion (IKEA, 2010). This case study explores the establishment and development of IKEA’s retail ventures in China and Japan – its first moves outside westernised countries and its first significant retail activity in Asia, despite substantial sourcing activity in the region, and discusses how IKEA might continue its market development in these territories. 2 Critically and systematically analyse the global strategic advantages of......

Words: 2661 - Pages: 11

Thám Tử Lừng Danh Conan chap 613 | Muppet Babies | Jeri Ryan