Entrepreneurship Case.. the Foreign Proposal

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UNIVERSITY OF BALLARAT
FACULTY OF BUSINESS, ENVIRONMENT & SOCIETY

MASTER
IN
BUSINESS ADMINSTRATION

ENTREPRENEURSHIP

CASE 14.3 – EDGAR’S BUSINESS

SUBMITTED BY : SODHI PRABJOT
STUDENT ID NUMBER : 30106256
LECTURER : DR. WONG WAI NAM
EDGAR’S BUSINESS
What type of arrangement is Edgar using in his business dealings with the firms in Australia, Singapore and Dubai? Be complete with your answers.

Edgar sells its products to different parts of the world through a contractual agreement. Edgar has a strong association in Australia, Singapore and Dubai to sell
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* After analyze the case this case study we understand that the key issues of foreign companies operating in China face while starting the business. Companies can enter the Chinese market, several factors must be taken as they go into a partnership, and some of the tactical steps they need to take in the early stages of their Chinese operations.
There are four key ways to enter the Chinese market:

* Exporting to China * Licensing, including franchising * Equity joint ventures * Wholly owned foreign enterprises (WOFEs or Woofies)

The main challenges every foreign investor and Edgar faces are:

* The challenge is to become a market increasingly important for Chinese Western companies of all sizes. Despite the difficult economic climate in Europe and the United States, the Chinese economy has experienced double-digit growth in recent years. With the country for the United States to pick up as the second largest economy in 2020 and intended for the engine of global growth over the next ten years to see how large and complex the market is of vital importance for most B2B companies (Hedley, 2013).

* Transactions in foreign currencies: China has regulations on foreign currency transactions affect the money to leave the country. A foreign parent payments for services provided to a subsidiary of China may be subject to a business tax of 5%. A foreign parent payment from the company for management depends on the business tax of 5% is
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