International Trade Business Assignment Help Overview
It is crucial for any organization to establish its business in new market. In order to do international trade in a country, it is
necessary for the company to analyze political, economical, and legal system of that country, in which it wants to run its business. There will be different challenges regarding cultural and social values that will have to be faced by the organization. Government intervention in private sector and its involvement in international trade issues also have an impact o the business of company. This International Trade Business case study assignment help paper analyzes the opportunities for financial institution in China Country on the basis of these parameters.
Challenges In order to start any business in a country, it is necessary for the organization to identify the cultural, ethnic and social values of the country. It is because these values affect consumer behavior that is must to be considered by the company to make successful its business strategy in new market. Therefore, it is crucial for the company to know social-cultural differences between home and host country. In this context, Chinese culture is based on Confucian philosophy that is different from western culture. Preference Chinese language in its educational background can generate problems for the negotiators to understand actual concerns of Chinese customers effectively. It is difficult for western negotiators to deal with Chinese negotiators because they have no understanding of Chinese culture and its business negotiation style. Chinese believe in simplicity and family grouping in society that should be considered while establishing business in this country (Croll & Croll, 2006). Apart from this, Chinese business person understand cultural differences as there will be no expectations from western business representatives to be fully familiar to Chinese tradition.
Political and Legal Systems There is a multi-party cooperation in China under the leadership of the Communist Party of China. Political system of china also follows political consultation means the CPC is the only ruling party in the republic of China. Other parties cooperates the ruling party in discussion of different country’s policies and in decision making related to international affairs and issues regarding culture, society, economy, etc. There is good cooperation between the CPC and other parties due to mutual support and equal participation in decision making of policies (Hooghe & Vermeer, 2012). According to the law assignment help experts, Legal system of china is combination of traditional approaches and has an influence of western law considerations. It does not have an independent judiciary that could be operated without the influence of ruling Chinese Communist Party (CCP). The CCP has an influence on all court matters and judiciary decisions that creates neutrality in law. It has included different business codes and laws in order to provide safe environment to do business in the country. In order to start business in china, there are several legal formalities that should be fulfilled by the business owner (Clarke, 2008).
Government Intervention in Private Sector Government of China intervenes in private sector because there is more involvement of Chinese government in the business. Government participates in major decision making related to the business that affects several corporate policies in large extant. It does not relax its control on different sectors such as finance, telecommunication, railways, energy, defense, etc. However, government has planned to remove some obstructions on the service business including finance too. Our case study help experts said that,this can reduce the opportunities for the company to get progress due to different restrictions and control. Company will have to follow several restrict formalities that will affect its effective establishment in the country. It will also have a negative impact on expansion of its business in other countries due to intervention of government (Popkin & Iyengar, 2007).
Economic System In 1949, the People’s Republic of China was constituted that had a socialist economy. This economy was same as the former Soviet Union that was sustained till year of 1978. In this economy, all business units and farms were owned by the government. Government had control on these units and their production and other operational activities with the help of appointing planning committees. In addition, there was no planning for market conditions, government did not focus on market forces due to occurrence of conflicts with its plans. After this, in 1978, China brought new reforms related to farms, in which farmers were allowed to grow and sell the crop according to their needs and wants that increased farm production (Zweig, 2009). In 1984, there was a great reform taken by Chinese government related to cities, which operated socialist market economic system in the economy. In this new reform, government introduced privatization in state owned companies and converted them into private corporations. It was allowed to western companies to open their business in country. This was a revolutionary phase of Chinese economy. In 1987, government leaders build an objective to double the rate of GNP as compare to year of 1980 and achieved this target before the end of 1990. After this, government of China decided to quadruple the GNP in 2000 from 1980 and it was obtained in starting of 1995. Now as per assignment help experts, government has set a goal to raise the GNP to average rate of all developed countries till 2050. It focuses on development of people that includes both market driven and society focused economy (Donnithorne, 2005).
Involvement of Country in International Trade Government has taken several reforms to establish international trade within the country. It has opened the economy for international trade and investment to be fast growing country in the world. Government supports international trade and supports global companies to do business in its country. Government official makes trade oriented decisions as per their requirements and motives that affects actual objectives and goals of international trade. Trade issues are solved by the intervention of the government, which are also biased due to governmental benefits and motives. It gets involved in trade issues to get social, economic and political objectives. Involvement of government in trade issues can help the financial institution because it will help the organization to operate its business with consideration of legal business activities and standards (Kong, 2008).
Opportunities in other developing countries To start business in China can be profitable for the company in terms of finding new opportunities for establishing business in other developing countries. It is because there are different developing countries near of China such as India, Pakistan, Bangladesh, Malaysia, Japan, Indonesia, etc. that also provide several business opportunities to invest in this business. China has also good trade relationships with other developing countries that can be also beneficial for this business (Clarke, 2008).
Regional Integration Efforts Recently, China has participated in different regional integration activities that helped the country to cooperate with other countries in Asia and take economic advantages from those activities. Its main objective to integrate with other economies in Asia is to change the perception of international community about the country that China is going to be open and responsible. In 1991, it has established a bilateral dialogue partnership with Association of Southeast Asian Nations (ASEAN) group. In Asian financial crisis, this country also supported and gave assistance to those ASEAN countries, which were affected due to adverse economic conditions (Volz, 2011). In 2010, China has committed to establish a free trade area for ASEAN group. Its agreement with GATT and WTO also shows that country wants to change its image from a conservative to integrative. In addition, China has executed an agreement on trade of goods under its FTA pacts. Apart from this, China participates in a regular summit meeting with Japan and Republic of Korea. Overall, China is trying to build good relationships with other countries by focusing on political and economical aspect (Biswaro, 2012).
Reason for Selection China country is selected for doing banking business because it is emerging country, where different multinational companies are expanding their business. It creates different opportunities for the bank to make large customer base. China is the second largest economy and most populous country of the world that has a highly diverse market for new business. It can be considered as an attractive place to do business because it provides appropriate market conditions and large population. China has also a trained labor pool that provides effective skills and talents to perform different business activities effectively. Company can find different resources at low cost as it can start its business efficiently due to dynamic market conditions. Continuous improvement in Chinese economy in terms of GDP, per capita income, etc. also indicates that company is in well condition to establish the business Government also provides good conditions for doing business. It also supports financial and banking services because good infrastructure, financial support, sound communication network, advanced technology, etc. provided by the government help them to establish their business in this country (Croll & Croll, 2006).
Overall Assessment On the basis of above assessment by business case study assignment help experts, it can be stated that organization should setup its business in China because there will different opportunities for the company to get progress in market due to having less financial risk with high returns. It will be beneficial for all stakeholders because it provides all needed resources at low cost that will help the business to be established and get more profits by building large customer base in this country. Joint venture with local financial company will be best suited for the organization to achieve its objectives. It will provide a platform to the organization to make market share in the country effectively (Zinzius, 2004). References Biswaro, J. M. (2012). The Quest for Regional Integration in the Twenty First Century: Rhetoric versus Reality: a Comparative Study. South Africa: African Books Collective. Clarke, D. C. (2008). China’s Legal System: New Developments, New Challenges. UK: Cambridge University Press. Croll, E. & Croll, E. J. (2006). China’s new consumers: social development and domestic demand. USA: Taylor & Francis. Donnithorne, A. (2005). China’s Economic System. UK: Routledge. Hooghe, I. & Vermeer, E. B. (2012). China’s Legal Reforms and Their Political Limits. UK: Routledge. Kong, A. (2008). Through the Application of International Public Relations, the Chinese Government Can Neutralize the Negative Effects of the “Made in China” Stigma, Thereby Protecting China’s National Image. UK:ProQuest. Popkin, J. M. & Iyengar, P. (2007). IT And the East: How China And India Are Altering the Future of Technology And Innovation. USA: Harvard Business Press. Volz, U. (2011). Regional Integration, Economic Development and Global Governance. UK: Edward Elgar Publishing. Zinzius, B. (2004). Doing Business in the New China: A Handbook and Guide. UK: Greenwood Publishing Group. Zweig, D. (2009). China’s Reforms and International Political Economy. UK: Taylor & Francis.