Wine Industry Analysis of China

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China, India & Wine | May 19 2011 | Assessing the global environment and developing solutions for Australian international managers: a WebQuest. (5461 words) | Sheena Bobeechun Troy Credlin Sarah Duff Audrey James. | Table of Contents Executive Summary 3 PESTL Analysis 4 Political & Legal Factors (Author - Sarah Duff) 4 Economic Factors (Author - Sheena Bobeechun) 5 Social & Cultural Factors (Author - Audrey James) 7 Technological Factors (Author - Troy Credlin) 8 Managing Ethics (Author - Audrey James) 9 Strategy & Entry Mode (Author - Sheena Bobeechun) 11 Global Human Resource Management 13 Linking with Strategy (Author - Sarah Duff pp. 13-15) 13 Staffing Policies 14 Training…show more content…
Specifically in Delhi the legal purchase of alcohol age is 25 years (GAPA 2006). Advertisement of alcohol is also illegal in some states of India due to The Cable Television Network Amendment Bill 2000, which completely prohibits the advertisement of cigarette and alcohol (GAPA 2006). Analysis Based on the above findings, we can conclude that China would have predominantly less political and legal risk factors compared to India. While both countries governments were entrenched with corruption and some forms of uncertainty, China’s progression over India in terms of trade agreements policies (such as the FTA) provides for a more stable political and legal environment to operate within. Furthermore, India’s high legal drinking age and laws associated with liquor advertising make China’s market seem more appropriate for exporting of wine. Economic Factors China The Chinese economy is moving along at a strong but steady pace, with GDP growth of around 10% for the past 5 years (DFAT 2011). GDP, measured in US dollars based on the Purchasing Power Parity (PPP) was $9.872 trillion in 2010, $8.95 trillion in 2009 and $8.204 trillion in 2008 (CIA 2011). The GDP per capita was $7,400 in 2010, ranking it 125th compared to the world. Moreover, unemployment rate has been at a low level (less than 5%) since 1990, currently sitting at a healthy 4.3% (ADB2011). It is estimated that 2.8% of the Chinese population live below the poverty line (CIA 2011). Interest rate

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