These reforms led to China’s integration into the global economy, which promoted growth and development. Since the integration of China to the global economy, its annual growth of real GDP has averaged 10% between 2004 and 2008, which is very high. However, due to the Global Financial Crisis (GFC), this rate of growth in real GDP slowed down to 8.7% in 2009. China’s government, suspecting this, implemented a US$586b fiscal stimulus package in November 2008 to maintain a growth of 8% between 2009 and 2012. This stimulus package did greatly for China’s growth as its real GDP was at 10% in 2010 and 9.2% in 2011.
For example Meredith and Hoppough state “Per-person income in china has climbed from $16 a year in 1978 to $2,000 now” (Meredith and Hoppough 393). When readers hear these numbers they should be astounded. The fact that the yearly salary average raised $1984 in 29 years is astonishing, and to think that that is only possible because of globalization. This example strengthens their argument for globalization because there are actual numbers and studies done to prove what they are saying. Meredith and Hoppough are saying that globalization is good for the economy and then they are giving facts from credible sources to back up their statements.
Alibaba holds no inventory, but controls 80% share of Chinese e-commerce market. For such a young but fast-growing company, many investors consider this IPO a huge opportunity, but others are still afraid of the potential risks. This case conducts analysis on Alibaba’s financial positions before the IPO, and on the impacts IPO will probably bring to Alibaba financially. In the meantime, this case presents two most serious risks regarding investing in Alibaba’s stock. Although Alibaba has a healthy financial situation, and the large cash inflow from IPO will provide the company with more opportunities to expand its business, it is still very risky to make the investment because of Alibaba’s corporate’s structure and Chinese government interference.
Order Code RL33604 Is China a Threat to the U.S. Economy? Updated January 23, 2007 Craig K. Elwell and Marc Labonte Specialists in Macroeconomics Government and Finance Division Wayne M. Morrison Specialist in International Trade and Finance Foreign Affairs, Defense, and Trade Division Is China a Threat to the U.S. Economy? Summary The rise of China from a poor, stagnant country to a major economic power within a time span of only 28 years is often described by analysts as one of the greatest economic success stories in modern times. From 1979 (when economic reforms were first introduced) to 2006, China’s real gross domestic product (GDP) grew at an average annual rate of 9.7%, the size of its economy increased over 11fold, its real per capita GDP grew over 8-fold, and its world
Although the party is a lot more relaxed then other communist such as the Stalin government in the Soviet Union, it still owns industries such as the energy sector and various important sectors which contribute to the countries economy. The figures don’t lie, they clearly state that China is growing at a very rapid as a global super power. The main reason why the countries political system has lead to economic growth is due to the ability to exploit the workforce of China. China has a population of around 1.344 billion which means that millions of jobs are required to keep the country moving. Around 937.27 million people work in China which is a huge amount and manly due to the countries democracy system.
Haier: Taking a Chinese Company Global Aiming to be the number one producer of white goals, Haier developed the marketing expansion strategy as called “three thirds”. The expected revenue from the market was designed to be derived from three categories: one-third produced and sold in China, one-third produced in China and sold overseas, and the rest one-third produced and sold overseas. In the past 20 years, Haier achieved a success to the largest market dominants in China. The company has a series of competitive advantage to realize this. As result of the contribution to the quality and market responsiveness, Haier won a very good reputation from the Chinese local consumers.
Case4: BATTLE FOR VALUE, 2004: FEDEX CORP VS. UNITED PARCEL SERVICE, INC. Answer of Question1: The stock price of both (pronominal) companies rose. Because the circularize transportation harmony surrounded by United States and mainland chinaware and the market place opportunities of this deal in china for FedEx and UPS. FedEx stock prices outpaced UPS because FedEx had a large presence in china by having 11 flights e rattling week and serving 220 cities in china with direct flights to in-chief (postnominal) cities such as Beijin and Shanghai. FedEx increment in market lever is because in efficient market, all investors have access to tuition and in this racing slip they believe that FedEx, due to its original market share and trading operations in mainland China and being groundbreaking and entrepreneurial company, it has a better chance of benefitting from this intellect. Under conditions of weak efficiency, a market is efficient if it factors past prices and trading volume into the stock price and neither of these factors would explain the 14% increase in FedEx’s market value of equity.
Also consumers in China valued a brand’s history e.g., people were favorable to Lenovo because it was seen as one of the most established PC brand in China and therefore had heritage there. Most respondents saw Sony as an early player in the Chinese market. Causes and complication: The four reports which Lopes looked at were: Shanghai report, Customer Interview report, CLUES and COMPASS report. Outcome of Shanghai report can be summarized into three key trends which were a consequence of the fast growth of the economy. The three trends were: First –Major education and
These benefits are often referred to as arising from synergy which accrues to the shareholders of the target as well as to those of the bidder. VF Corporation is offered something in excess of what they perceive to be the current value of those shares. In spite of the eurozone financial crisis, VF’s revenues rose by 20 per cent in constant dollar terms in Europe, while sales in Asia surged 43 per cent. This is the right time to take the Timberland to the next level, with expected 2011 revenues of $1.6bn, over half of which are generated internationally. For the full-year 2010, Timberland reported revenue of $1.4bn, an increase of 11.2% over the prior year and up 11.7% on a constant dollar basis.
Especially China and India, both of them keep high growth speed each year. However, the toy industry in the certain market area had a large number of players including not only the manufacturers but also retailers. In the toy industry, both of USA and China are in the world’s spotlight. Because USA has the biggest marketing share in the world. And China is the biggest manufacturer in the world, meaning that the 60 percent of the toys sold in the world are made in china.