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International business - Research Paper Example

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International Business Table of Contents Introduction 3 Economic and political climate for foreign business 3 Methods for marketing and distribution 4 Managerial and labor climate 5 Reference 7 Introduction Globalization has been effective in providing stimulus for multinational organizations to conduct international businesses…
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Download file to see previous pages The analysis has been done in terms of the nations’ political and economic climate, their methods of marketing and distribution and also the labor climate in the two countries. Economic and political climate for foreign business Singapore has an extremely successful and developed free market economy. It also offers a corruption free and open environment where prices remain stable and the per capita GDP growth also remain high in comparison to other developed nations. The economy’s high dependence on exports of products like electronic and information technology products, pharmaceutical and growth in financial services make it a popular place for conducting business. The nation has demonstrated a GDP growth of 7.1% between the years 2004 and 2007 (CIA, “Economy - overview:”). On the other hand Hong Kong also demonstrates a free market economy which depends highly on international finance and trade. The nation’s open economy was however greatly affected by the global economic recession which makes it a less popular place, in comparison to Singapore for doing business. The residents of Hong Kong can establish RMB denominated savings accounts, the RMB denominated corporate, and the Chinese government bonds have also been issued in the nation. Moreover, the RMB trade settlement has also been allowed in Hong Kong. The nation has a GDP growth rate of 3.8% between 1989 and 2010, however the growth gradually slowed down in the year 2009 (CIA-a, “Economy - overview:”). It is apparent that the higher GDP growth of Singapore in comparison to Hong Kong coupled with a free market economy makes it more popular for conducting business operations. Also the nation’s growth in the financial sector and high dependence on trade and finance compliments the same. Methods for marketing and distribution With improvement of the Singapore economy there has been an increasing amount of affluent consumers who are able and willing to spend and consume more. In addition to this a number of new shopping malls like the VivoCity, Ang Mo Kio Hub and Central have emerged which have further added stimulus to the retail sector since 2007. The existing shopping malls like Centrepoint, White Sands and Tampines Mall have also been revamped, with the new extensions established to accommodate more number of retailers for remaining competitive. The inflows of new retailers in the selling spaces have further attracted more consumers who have been increasingly visiting them. This had boosted their growth further in 2007 (Laposte, “Singapore”). There are two different categories of consumers in the country Hong Kong. There are the local consumers, who account for 6.5 million numbers, while on the other hand the tourists, who are avid lovers of the luxury items. The tourism sector generates greater than ten billion USD of income every year. It must be noted that tourists who come for shopping in Hong Kong are primarily Chinese from Mainland. The distribution network comprises of many medium and small family-type enterprises which try to remain in groups. The larger stores like the Lane Crawford, Sogo or display a very upscale image while the supermarkets and the neighboring stores like Wing on, Jusco and Sincere remain more profitable for making bulk products. The second market is more dominated by duopoly by Wellcome and Park'n shop. Hong Kong also has a number of discount stores ...Download file to see next pagesRead More
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