GOLDEY-BEACOM COLLEGE

MKT 626 QA - INTERNATIONAL MARKETING (MBA)

By Dr. Hibbi M. Omar Fall 2010 Session II TERM PROJECT Option # 2

Marketing to China

Submitted by:
Hardik Patel Student ID No--284679

Summary
In this article, the author describes about how china will change your business. China is most rapidly changing large economy country in the world, it is an ever increasing presence
and influence in our lives, connected to us by the world's shipping lanes, financial markets, telecommunications, and above all, by the globalization of appetites. It has largest maker of consumer electronics, economic development ladder, sews more clothes and stitches more shoes and assembles more toys than any other nation. It is building cars and exploring space with its own domestically built rocket

Everyone wants to involve in particular business but its need to know what is
happening today in China and to understand how China's outcome has become inextricably jump with our own. Conceding China's grow does not mean giving way to China. But it does require a some important factor like: 1) China's economy is much larger than the official

numbers show. 2) The growth of China's economy has no equal in modern history. 3) China is winning the global competition for investment capital. 4) China can be a bully. 5) China's economy is an entrepreneurial economy. 6) The most daunting thing about China is not its ability to make cheap consumer goods. 7) China is closing the research and development gap -- fast. 8) China now sets the global benchmark for prices. 9) China's growth is making raw materials more expensive. 10) No company has embraced China's potential more vigorously than Wal-Mart. 11) There are hidden costs associated with doing business in China. 12) Piracy is a problem. 13) China's heavy buying of U.S. debt has lowered the cost of money in the U.S. 14) Americans and Chinese have become reliant on each other's most controversial habits. China and U.S .both countries are depend on each other .thus do the routes to success
chosen by China and the U.S. put both countries at risk. Without the U.S. to buy Chinese goods, China cannot sustain its growth. There is, however, no evidence upon which to base

such a prediction. China are worlds large, highly nationalistic, dictatorial, Communistcapitalist countries offers a historical analogue.

Opinion
Article of How china will change your business by Ted C. Fishman is include very important truths which every entrepreneur need to know before starting business in china or doing business with china. I really agree with this points and some statistics which given by author in this article that china is most rapidly changing economy and data shows that china is winning the global competition for investment capital. In 2003 china took a strong lead, pulling in $ 53 billion to the U.S.s $ 40 billion. According to base on my personal experience and statistics which can prove that china is rising country and everyone knows that china is an increasing presence and influence in our daily use product like shoes, clothes, consumer electronics, building cars, making parts for Boeing 757s, and exploring space with its own domestically built rockets. In 2004, the Chinese sold the U.S. $ 160 billion more goods than they bought. Chinas economy is much larger than the official numbers show, and also china is competing their entire product in global market. The exports and imports by foreign companies operating in china rose by over 40%. More than half of chinas trade is now controlled by foreign firms. So on base this data we can say that china is winning global competition for investment capital. In last, I just conclude this topic by saying that fourteen things every entrepreneur should know about the china and do not assume that conceding chinas rise means conceding to china. Chinas wonder economy can come at you in a lot of ways, from all direction. The people of
China are indirectly subsidizing the insatiable shopping of Americans. China and America

are fortunes of the other nations, and without these two countries the rest of the world might also sputter.

Summary
According to the author can china save the world? The answer of this article is china can help but it remains same country with an annual per capital income of $6000. This is very lower compare to U.S. $39,000 and E.U. $33,400. China is not yet the leader of the global economy but its getting there. China has now become the focus of the world that is looking for a way out of flood. As Shanghai based economist Andy Xie puts it, everyone wants to know the same thing: Can china save the world? Overall retail sales in china are up 16%. Chinas is the only one that is growing, and it could soon beat Japans to become the worlds second largest. Chinas economy was dependent on manufacturing, which was in turn dependent on demand from the U.S., the worlds certain economic train. Now a days American home prices continue to fall in some cities, while the unemployment rate has soared to 9.5%, the highest since 1983. Base on this data the best possible answer to the question of the whether China can save the world is: Not yet. Plenty of economist uncertainty that chinas economy is as sound as it appears like on way to a constant recovery. Bill Powell explains that Chinese economy is no optical illusion. China is relatively poor country compared to U.S. America has a $14 trillion economy; chinas is $ 4.4 trillion. The U.S. accounted for nearly 21% of the total global GDP last year; China just 6.4%. Chinese consumption, in the other words, is growing- but is still insufficient to raise the worlds advanced economies out of recession. Peking Universitys Pettis, Chinas consumption was about the equivalent of Frances. No one is calling on France to save the world.

Opinion
According to my thought and experience I just say that Chinas economy is very small compare to the world economy and this small economy cant improve the world economy. But china can help in this world recession. Following some statistics can prove that Chinas is the only one that is growing, and it could soon beat Japans to become the worlds second largest. China economy grew 7.9% in the second quarter of 2009 and will now probably expand 8% or more in 2010. Auto sales, helped significantly by government subsidies for small-car purchases, hit an all time record in April 2009 and will easily surpass those in the U.S. this year. Overall, retail sales in china are up 16% in 2009. This all figure will help that china is growing in this recession and but it doesnt mean that china can save the world economy. Chinese consumption, in the other words, is growing- but is still insufficient to lift the worlds advanced economies out of recession. Even as chinas consumer feel richer, their share of its economy may not change until Beijing enacts reforms to the healthcare and social security systems, steps that would give people more confidence to spend rather than save. In conclusion, I would like to say that china is not yet the leader of global economy but china is trying to get in there, China is relatively poor country, base on per capita income compare to U.S. and E.U. Most Chinese still cant afford a Volkswagen or a Buick, let alone BMW. After all, Chinas economy was dependent on manufacturing, which was in turn dependent on demand from the U.S. America economy is getting worst and worst day by day. So if America increases demand than the world economy going to improve otherwise there is no ways to china plays any big role in world economy.

Summary
In article of Does China Pose an Economy Threat to the United State? In this Issue so many American politicians and some business people complained about the loss of U.S. jobs to China, unfair Chinese trade practices and a Chinese foreign currency policy that favors Chinese exporters who flood world markets with cheap goods. China dumps inexpensive goods in America that U.S. businesses cannot compete with this Chinese product. If you stop cheap imports from China then Low interest rates keep the economy humming. And U.S. consumers to pay higher prices and higher interest rates. Chinas economic development in many ways poses an opportunity for the United States. Its not that the benefits are unalloyed. Whenever we have changes in the economic structure, some parties are hurt. University of Pittsburgh Groshen says the product and service will change over time depending on what she calls the three Ts technology, taste and trade. In short we can say that some people or countries are allowed specialize in the production of things in which they have comparative advantage. Thats where the gains in trade come from. Many people are worry about the size of the U.S. trade deficit with China and demand of dollars because the fact that U.S. import from China have grown more rapidly than exports to China. This more import from china will result in unemployment or less job in U.S. Marshall Meyer, a Wharton management professor who studies Chinese businesses and has spent much time in China, sympathizes with American workers who lose their jobs to overseas competition. But he says the best solution is not protectionism. Instead, the United States should educate workers to compete in an ever-changing world economy. - By Thomas Rawski, professor of economics and history at the

Opinion
According to my opinion I can say that its not china fault that America has more trade shortage and china cause an economy problem to the United State. Because as Professor Thomas Rawski, suggests that Chinas economic development in many ways poses an opportunity for the United States. Its not that the benefits are unalloyed. Whenever we have changes in the economic structure, some parties are hurt. If the sun is shining, people cant sell umbrellas. So should we say that the sun poses a threat to the economy because umbrella sellers perform poorly? On base this argument I doesnt say that china can pose an economy problem to the United States. China has recently been in the cross hairs of the Bush administration for pursuing policies that are said to hurt American companies and workers. Members of the administration and representatives of some manufacturing companies have asserted that the United States is under blockade by China, which is the worlds most populous nation, has a red-hot economy and is a major supplier of goods to America. Factory jobs are disappearing in the United States as companies seek Chinas bargain-basement wage environment, these critics say, adding that China dumps inexpensive goods in America that U.S. businesses simply cannot produce as cheaply. I really agree with Lim that it is odd that China has been made a scapegoat by some American politicians, because Chinese imports help consumers and big employers like WalMart. Lim adds that the loss of 2.7 million manufacturing jobs since President Bush took office has been due to slow economic growth and a dearth of business investment in the wake of the collapse of technology stocks in 2000 not because of China stealing jobs.

The U.S. economy is so huge that whenever you have something like high unemployment it has to be because of domestic factors, not trade, she says. Total imports from all countries in the world are only 15% of U.S. GDP. So, on a political level, theres an attempt by the Bush administration to blame someone else for what is a failure of the U.S. domestic economy. This is not necessarily the administrations fault; it could be the business cycle. The weak point in the Bush record is the large loss of employment, so its temping to blame foreigners rather than yourself. And its easy to point to China because of the trade deficit.

Summary
In this journal of Marketing agriculture product to china by Li, Zhan G., and Diana E. Eadington. Focus so many things like How to enter and expand in the Chinese agricultural market successfully. China look bright for U.S. agribusiness because a growing Chinese population, the increasing affluence of Chinese consumers and changing dietary habits, and the industrialization of China's economy. China's 1.2 billion people represent 21 percent of the world's population. Such growth is placing a heavier demand on the nation's supply of various agricultural products. In china government placed restrictions on sales of farmland larger than 66.6 hectares. The only reasons is china lose so much valuable farmland.

There are potential problems facing U.S. agribusiness firms when they do business with china like competition, regulatory and political controls, and cultural and economic differences. What can they do to overcome these problems? Answers to these questions can help U.S. agricultural exporters target their marketing efforts in China, make resource, monitoring, education, segmentation & adaption, distribution & sales channel and to succeed in the Chinese agricultural market, foreign agribusiness firms need more than good products, marketing plans, and patience. They also need Chinese contacts which can be obtained by hiring qualified overseas Chinese or entering joint venture programs with Chinese companies.

The Chinese economy continues to grow. U.S. exporters who seize the advantages there can position themselves favorably in the hottest agricultural commodity growth area of the

twenty-first century and enjoy the benefits of satisfying the demands of the world's most populous nation.

Opinion
In this academic journal I can say my point of view that china is China's 1.2 billion people represent 21 percent of the world's population, its numbers increase by 16 million people annually. Such growth is placing a heavier demand on the nation's supply of various agricultural products. There are many reasons behind why the export opportunities to China look bright for U.S. agribusiness firms because a growing Chinese population, the increasing affluence of Chinese consumers and changing dietary habits, and the industrialization of China's economy. Although China represents an enormous market for Western agricultural firms, one must also be aware of the potential problems of doing business there. Challenges could arise from competition, regulatory and political controls, and cultural and economic differences. To help answer this question, we attempt to offer some suggestions for U.S. agribusiness firms interested in entering and succeeding in China.