Assignment 1

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

Advantages of Doing Business in China: As mentioned previously, there are many organizations around the whole world that perform their business in China. They do business in China due to the fact that China has a reliable market. It is also expected that the organizations doing business in China will continue to grow. Some advantages of doing business in China are that it is a major emerging market around the world. Also there are a lot of opportunities for organizations to invest in China for a longer period of time due to expanding of technology and

Today, China allows and creates many job and advantages for oversea citizens. In the passing years, China has been expanding its oversea trades constantly, which attracts and interests many oversea citizens and American to bring their business to China. My cousin has established a company in America few years ago, his corporation empowers real estate agents and photographers to add huge value to property sales and rental transactions with virtual reality and sing property websites. Few months ago, he brought his business back to china because he sees China does not have any firms like his. So he decided to go back to China to establish another branch. And now, his firm works very well in China’s market, and many real estate agents are interesting in it, which made a very good outlook for him. Besides, he is luck that he has caught the right moment and opportunity to expand his business in both America and China. Additionally, he tells me that the China’s market now is favoring the oversea citizens, if I am interested in return back to China after graduated, I should plan ahead right now to see what is China lacking off today. Meanwhile, not only my cousin is telling me this, but many of my other relatives and friends are also have the same remind to me, which makes me see the hopes and

- The third step: You need to establish a list of your employees on the system. You need to fill in employee’s name, address of employees, tax information such as Tax File Number (TFN) and etc.

(a) Name (b) Enter P for partnership; S for S corporation (c) Check if foreign partnership (d) Employer identification number

I spoke with you a few minutes ago about your Business visa. Because TIN number of the company who is invited you starts with 9, we will also need a copy of their registration certificated as I have mentioned during our conversation - please see a sample of it attached.

3.4 Political Factors: Politian’s in China are attempting to avoid any acceptance on a leadership role in the world economy. They claim that China is still behind other countries in technology and has much lower power per capita GDP compared the world’s leaders; US. (Leo, 2010). Due to these 2 factors, lack of technology and economic developments, this presents more opportunities for international businesses. The reason being why China maintains to be an eye-catching destination for international markets.

China government give opportunity for invest in the country such as give low corporate tax, directly start the business without any join venture with local partner, government will provide loan facility. If the firm breaks the law and regulations, government can immediately close down the firm.

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

The Doing Business database ranks China a modest 91st on the overall ease of doing business, with India worse but not dramatically so at 116th… in China it’s quicker to start a business, get goods from factory floor on board a container ship, and register property. But Indians - perhaps surprisingly - seem to have more flexible labour laws and fewer hassles with licences.

[Its place of registration if a company or a LLP. Please note this is a requirement under new regulations which were brought into force on the 1st January 2007 ]

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were

This includes the opening hours, taxation and employment regulations such as the Regional Daily Minimum Wage Rates issued by Department of Labor and Employment. Business located in the region of NCR. In operating a business, first is that the business name must be registered to DTI and BTRCP. After this is that, you must get business permit from the municipal hall, barangay hall for the business clearance, BIR office to get TIN/Certificate, DOLE for businesses with five workers or more and register business, PhilHealth because all of the employers are required to register their employees. Philhealth manages and administers the government health care

Therefore, before attempting to set up operations in China to focus on the Asian market, you can implement dealer / Chinese cooperation with local businesses. After checking the sales for one or two years, as the company made ​​a profit of starting a new company in China to develop (Rpemery, 2012). The local Chinese distributor also helps start a new business because they know the market well. This avoids confusion for sale in the country and increases the tedious tasks, such as finding the right place for the office or the purchase of machinery for the production of plants to reduce. It has the support of Chinese merchants to do business.

Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.