China

[Name of the Institute]China

Introduction

The cheap labor availability, China is a country with high population and labor is cheap which results in the lowering of cost of production. The raw materials are also cheap in China as compared to other countries. A part from the availability of raw materials and labor, the quality parameters for production in China as compared to other countries. This is because Chinese do not have state of art technologies due to which the overhead cost also decreases. Where as in U.S factories have high state of art technologies , which increases the overhead cost and thus cost of production increases. China has low interest rates and low inflation rates due to which cost of production decreases and therefore, operating cost in China is low (Blackman, 2001).

Over the years, China's economy has grown. Companies from every corner of the globe are seeking to open their units in China. China's economy at present is one the boom. It is one of the most lucrative markets so establish businesses. However, on the other hand, with the help of cheap labour the marketers are of the opinion that China has beaten nearly every economy in the market place. Over the years, the stability in the market of china has attracted people from every corner of the globe. It is due to this fact that people and companies focusing on making their products from china. China's reasonable labour and lucrative market allow and attracts the people, and it is therefore, people are gaining benefit from it.

SWOT Analysis

Doing business in China is seriously a difficult task. It is essential for the person or even the country to know where they stand in the Chinese business market.

SWOT Analysis of Doing Business in China

Strengths

Lucrative Market

Cheap availability of Labour

Excellent Skills

Weakness

Make people work under pressure

Easily attracted to new processes and tend to change quickly.

Opportunity

Plans of organizational development and enhancing the business strategies

New progress can help achieve targets easily

Threats

Since there is easy entry and exit the country can bring and attract a number of firms which creates a treat to the rest

On the other hand, it is essential to know that the Chinese mainland has sufficient opportunities in a number of business sectors. On the other hand, the environment provided for the business in the mainland of China is different as compared to that provided by Hong Kong in features for instance trading, as well as foreign investment regulations, import and export regulator and tax system. Additionally to this, in the path of trade and industry liberalisation, the mainland of China over the years is revising their foreign fiscal, as well as the trade regulations. However, by viewing such state of affairs, a number of the companies operating in Hong Kong anticipate to initiating their businesses in the China's mainland. These ventures and numerous projects in the mainland of China is making the market more lucrative.

The strengths of the country were the sound economic performance which enabled them to perform well in various ...