Strategic

China is the second largest economy in the world. It has become the fastest growing economy in the world with an average rate of 10% for the last thirty years. The largest exporter and second largest importer of goods has brought China to be ranked first in the foreign exchange reserves. The country with thousands of years of history, started off and continues today as mostly an agrarian economy. Over time China's economy continues to change and prosper. Starting with the first economic change in the early twentieth century, which occurred when the GMD (the Nationalist Party) lost control due to its poor economic performance. This in turn led to their defeat by the CCP. During that time many peasants lost their farmland and this led to a peasant

In Western languages 'culture' commonly means 'civilization' or 'refinement of the mind' and in particular the

Since the reform and opening up, the economy of China grows significantly, as an emerging economy, China's economy has made tremendous contributions to the global economy, and Renminbi has become one of the most important currency in the world. According to the survey conducted by China National Bureau of Statistics found that from 1979 to 2012, China has attained an annual average growth rate of 9.8% for its national economy, while the annual average growth of the world economy is only 2.8 % during the same period. In past 30 years, China's GDP surpassed Japan’s, China became the world 's second largest economy, in addition, the huge total volume of trade makes China become the world 's largest trading nation. The contribution of China’s

Esquel, one of the leading cotton-shirt-manufacturers in the world came from China and it supplies lots of clothing brand such as Banana Republic, Tommy Hilfiger, Hugo Boss, Brooks Brothers, Abercrombie and Fitch, Nike, Nordstrom and Lands’ End, in addition to private companies (Plunkett Research, Ltd.). However, due to the high demand of the US apparel stores for Chinese products, the low cost, which was the main reason why raw materials are being purchased from China, have increased. China’s competition is huge, with Vietnam, the Philippines, Malaysia and Sri Lanka also producing material at cheap prices (Plunkett Research, Ltd.). The US apparel stores can instead purchase from these other Asian countries. It is hard to determine the exact number of suppliers in this industry; but, in general, majority of them are in Asian countries that can provide low-cost raw materials to US-based apparel stores. Therefore, the US apparel stores may acquire higher net profi

First, power distance is the first dimension in Hofstede’s six cultural dimensions. Power distance is the “extent to which the less powerful members of institutions and organisations within a country expect and accept that power is distributed unequally.” (Hofstede, 2017). When comparing China and the United States, China had twice as high power distance score than the United States. The high-power distance score in China shows that it is acceptable to have inequalities in their society, and that the people accept and expect power is distributed unequally.

The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.

Although the Chinese apparel manufacturers would lose profitability due to rising cotton prices and competition from emerging countries, they stand to gain the most from the removal of U.S. quotas and tariffs. According to the author, in 2007, 95% of the 20 billion garments Americans made were purchased overseas. Due to U.S. trade barriers, China’s share of the U.S. apparel import was only 30%. Once these barriers were removed, Chinese apparel would flood the American market due to their low cost and dominance in garment manufacturing. Experts predict that China could eventually supply 85% of U.S. apparel. As they increase their market share in the

Based on the population issue, the Chinese government enforced the birth control policy from the late twentieth century until now, so the total fertility rate of China is lower than the total fertility rate of the U.S. In the labor market, China plays an important role of the labor export. Large population emerges more workers, so the labors are cheaper in China. After the cold war in the 1990s, the global economic cooperation made the connection between countries was more close and complex. Many international companies invent and possess their core technologies in the U.S or other developed countries, but they found their manufacturing factories in China. They already aimed at the Chinese large cheap labor market could reduce the cost in their entire business. Consequently, people can find different kind of stuff labeled as “made in China” easily and frequently—it is a good explanation for the fact of half of my clothes were “made in China”. Many small factories which produce clothes and accessories are located in small towns in southeast of China, especially Zhejiang, Fujian, and Guangdong Provinces. Most of workers in those factories are wide range-age women who from rural areas with lower level education. Their working conditions are depended on the conditions of the factories.

The term culture is described as ‘a verb’. However it is explained that culture is difficult to define as it can be associated in different ways by different people. Some people think of culture as a thing while others term it as a set of beliefs,

Power Distance is the dimension that deals with the fact that all individuals in societies are not equal it expresses the attitude of the culture towards these inequalities amongst us. At 80 China sits in the higher rankings of power distance a society that believes that inequalities amongst people are acceptable, therefore subordinate-superior relationship tends to be polarized and there is no defence against power abuse by superiors. Individuals are influenced by formal authority and sanctions and are in general optimistic about people’s capacity for leadership and initiative. People

Another alternative is to focus all of the attention on the expansion of the existing cliental in the global markets. Shanghai Tang’s major consumer base is made up of loyal American and European customers. The market is already well established, they know what the consumers will and will not buy and the demographic of people are already in every major market. 30% of the Mainland China market is made up of American/European consumers. While, not surprisingly, 77% of the US market is made up of the same client profile. What is interesting is that only 12% of the US customer profile is comprised of Asian

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.

According to the data, the total volume of textiles exported from China has started a continuous rapid growth since 2001 (the year of China’s accession to the WTO) as shown in the first graph above, which roughly

Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and

When looking at national culture one must look at the six dimensions that determine a countries power and wealth. We look at the Power Distance Index (PDI), Individualism versus Collectivism (IDV), Masculinity versus Femininity (MAS), Uncertainty Avoidance Index (UAI), Long Term Orientation versus Short Term Normative Orientation (LTO) and Indulgence versus Restraint (IND). By examining each of these dimensions we can see how much or how little a specific country has within that category. Looking particularly into China, I have found that China scored high within 3 out of the 6 dimensions.