from China goes to Wal-Mart. This made Wal-Mart China’s eighth largest trading partner. Governments, businesses, communities, and individuals in countries around the world face both challenges and opportunities as a result of rapidly expanding economic globalization. Changes in a country’s economy can happen very quickly and can deeply affect people and institutions. The fact that Wal-Mart is a company not even a country; and is China’s eighth largest trading partner; just makes us realize how much economic growth depends on businesses to produce more goods and services faster and more efficiently.
Money is what makes the world turn and it’s exactly what china has. China primarily gets its money from its huge exporting business all over the world. Everywhere you see it says made in china it was made and bought from china giving them more money. Not only has this but America owes china a lot of money from are “issues” that we had and they could pull this card anytime they want and ask for their money. This money could be used to fund next generation equipment for their military technology and even for society.
The stock prices rose because the air transportation agreement between United States and China and the market opportunities of this deal in China for FedEx and UPS. b. FedEx stock prices outpaced UPS because FedEx had a larger presence in China with its Chinese volumes nearly doubling from 2003 to 2004. FedEx having 11 flights weekly and serving 220 cities in china with direct flights to important cities. c. FedEx’s increase in market value is because of the efficient market. All investors have access to information, and due to its current market share and operations in China.
Firstly the development of TNC’s in countries. Tesco is a major TNC and in 2004, its first stores opened in China. This would bring lots of investment into China which would create many jobs, and access to new technology. Overall TNC’s would increase countries GDP. Also China is a NIC (newly industrialised country).
FedEx had high stock prices because they had a larger presence in China then UPS did. FedEx was more innovative and catered to more cities in China, also offering more weekly flights then
Background and Problem Palliser Furniture Ltd. is Canada’s second largest furniture company. They currently have production facilities in Canada, Mexico, and Indonesia. Due to increasing competitive pressures from Asia, Palliser Furniture must decide whether to expand into the Chinese market, and if so through which entry strategy? External Analysis: (Industry) Porters 5 Forces/SWOT Analysis -Opportunity: China’s total furniture output value was $20 billion and accounted for 10 per cent of world’s total furniture output value. China’s furniture export was growing at an annual rate of over 30 per cent.
With current successful operations in Hangzhou, China, Riordan now has plans on continually expand its manufacturing operations in China. Although it may sound and potentially be a swell idea, there are many political risks that Riordan Manufacturing will have to overcome. The number one political risk Riordan will be faced with will be government interference due to being a foreign company. The major interferences can be from nationalization of industries through asset confiscation, currency inconvertibility, to contract repudiation with respect to government owned firms. Just these three political interferences could eventually seal the fate of Riordan Manufacturing operating abroad.
A “switched on” country is widely connected economically, socially, physically and politically. Factors that affect this are natural resources, trading, culture, skilled labour force, languages spoken education and healthcare and its economy. China used to be a communist country, so there was a lot of State interference when involving what products to be bought and sold, in the 1990s, China’s economy became more Capitalist so products that are now bought and sold are based on what the population demand rather than what the government choose. The effect of this is that China’s links to other countries increase and global brand names become more well-known in China. Trans national companies start to set up there due to the massive population and amount of natural resources which provide potential employee’s and raw materials for industrialisation and new buildings are built for offices, factories and homes and it provides many more jobs for Chinese people.
But some of the population has gained also due to the creation of higher paid jobs in some factories, for example some of Nike's factories provide safe working conditions for higher pay than they were previously used to. However the rapid inflation that China has been experiencing has caused a large increase in the prices of products and this could ultimately lead to poorer consumers being unable to purchase the goods that they need to survive as they no longer earn enough from jobs such as farming. Stakeholders that have been impacted by the rapid growth of the Chinese market are the companies that choose to outsource their work to China. Due to the growth that China has experienced in the recent years, roughly 10% over the last 20 years, many companies now choose to outsource some of their labour-intensive work to China as wage rates, although they are increasing, are still much lower than developed countries like the UK or the USA. This has allowed companies to move to China and lower their costs substantially.
For instance, Canada’s four main emerging products could be associated to with different sections of the Chinese economy ranging from ores to manufacturing, from wood to residential construction and from vegetable oil and seeds to domestic consumer consumption. In 2012, 31 percent of Canada’s ores were exported to China, making China its biggest customer for ores. Furthermore, export of wood and oil seeds increased by 74 percent and 167 percent respectively, in 2012. As China’s demand for more sophisticated products increases, Canadian exporters will have a unique opportunity to capitalize on this by providing more services related to their products. Although there is shift in China’s economic policies, its massive domestic market will