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Internatinal business - Essay Example

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Title University Executive Summary Star Traders will be a privately owned company engaged in the sale and distribution of small electronic items in developed markets. This company will be procuring electronic items including memory chips, storage media as well as mobile processing chips from the international market i.e…
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Download file to see previous pages Entering into China will not only open the gates of opportunity in China but in other Asian countries also. Star Traders aims to procure low cost products and sell them at the relatively reasonable margins in the international markets. This strategy will be leveraged through extensive marketing to the existing client base in the developed countries of the world. It is however, important to note that China has the risk of political instability as country is predominately a Communist society with government controlling most of the assets in the country. International firms are not allowed to operate on their own and need to develop working partnerships with the local players to enter into the market. To successfully enter into the market, a financing of approximately $10 million will be required. Research The name of the business is Star Traders and it is going to operate in China in partnership with the local players already working in the chosen field of business of the firm. China has a population of over 1.3 Billion with Han Chinese forming the 92% of the overall population of the country. The overall population growth rate is around 0.48% which China has been able to control over the period of time (“CIA World Fact Book. China”). China has the highest population in the world therefore in order to control the population, China has implemented one child policy (“CIA World Fact Book. China”). As mentioned above, the major ethnic groups in the country include Han Chinese which form over 90% of the population of the country. Apart from Han Chinese, Zuhang, Manchu, Hui and other smaller ethnic groups exist too. However, the overall concentration of these smaller groups is relatively low and Han is the major ethnic group in the country. Mandarin is the major language being spoken in the country. Apart from this, Cantonese, Wu and other languages are also been spoken in various parts of the country. Mandarin however, is the major language spoken by most of the ethnic groups in the country. It is also critical to note that the there are various dialects of the Mandarin also. Over 30% of the population of the country lives under the age of 30 years indicating that the country has ample supply of young labors to continue to supports its economic progress achieved and sustained over the period of more than 10 years. China is the fastest growing economy in the world and has recently overtaken Japan as the second largest economy in the world. With over $12 trillion GDP with a real growth rate of over 7.8% indicate that the Chinese economy has the potential to offer one of the most lucrative business investment to be made. It is also important to note that the China is a predominately manufacturing oriented economy with manufacturing taking more than 46% of the overall GDP of the country. Services sector has a share of 43% whereas rest of the share is taken over by the agriculture sector of the economy. Major export items include electrical and mechanical equipment. Iron, textile and data processing equipment. The major trading partners of the country are US, Japan, Hong Kong as well as Germany and South Korea. As compared to exports, Imports are relatively low and are only over $1.7 trillion with electric and other ...Download file to see next pagesRead More
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