• It’s a very competitive industry. Every company (UPS, FedEx, USPS) mimics the other company’s service and promotions. There is a lot of potential market for both companies because of China’s industrial, economic, export and import advantages. Especially after the agreement between China and U.S was reached. Therefore their competitive prospects are very strong.
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).
2. Outline the possibilities for foreign securities. Security is top priority for any company, especially when conducting business in a foreign country. A country needs to ensure to its citizens and foreign visitors the country is secure and is welcoming of all foreigners. Still, a country like China with its prestigious
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.
What advantages would China offer foreign companies to list on its exchanges? Are these advantages greater than the disadvantages? Explain. The world has seen China's enormous potential and companies do not want to miss out an opportunity for future growth. China's strong and effective state machinery has been modernized and effective tool for mobilizing resources.
First of all, due to offshoring, China's economy is growing. According to Dyer (n.d.),"The economy of China is undergoing unprecedented growth and structural change...China saw economic growth of 11.2 percent..." (para. 3). Offshoring has made China to improve significantly, resulting in rapid development. "The recent wave of offshore souring has certainly generated rapid income growth in the target countries, at least for some sectors of the population" (Levy, 2005, P.691).
TNCs can have a powerful influence on both local economies and international relations. They continue to play an important role in globalization. It can be seen that TNCs have grown globally due to the competitiveness of international economies and the way in which they can produce and trade cheaply and easily. Often TNCs such as Nike, Dyson and Tesco have their headquarters of their corporations in MEDCs, for example Nike’s headquarters are based in Oregon, USA. They reason for this is that they are based in areas where they can hire skilled and educated workers.
Dick’s Sporting Goods is rapidly growing and achieving things that many people thought would be impossible. This year alone, Dick's Sporting Goods has exceeded expectations with its third-quarter results and they have also pleased their shareholders with its plans to start paying dividends. Dick’s Sporting Goods now operates more than 450 shops across 42 states, along with 81 Golf Galaxy stores in 30 states and they do not plan to stop here. Dick's third-quarter net sales rose by 9.3% from the year-earlier, to almost $1.2 billion, with the help of additional sales from 19 newly opened stores. The company's gross margins went up by 126 basis points, to 29.7%, mainly because of better inventory management and a change in the product mix and selling and administration expenses range in at $274.4 million.
From CNN Money, we learn that out of 500 best companies in the world, 166 of them have their headquarters in the United States. On the other hand, China is a powerful state, too. Even though communism is the dominant style, China has managed to export huge amounts of products throughout the world. China has achieved to become the United States’ primary competitor in economic development. It has had a very rapid economic growth in the past few decades.