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China - Marketplace
Texas A&M-Commerce
In partial fulfillment of the requirements for MGT 380
Professor Lloyd M. Basham
April 22, 2018
Table of Contents
Abstract
3
Introduction
4
China’s Modern Consumers
5
International Business in China
6
Unsuccessful Marketing in China
7
Superstitions in China and Their Influence on Products and
Marketing
8
Chinese Government Regulation
9
Counterfeit Products and Fraud in China
10
Foreign Investment in China
11
Chinese Calendar
13
E-Commerce in China
13
Conclusion
15
References
18
Appendices
Appendix A
22
Appendix B
23
Abstract
This paper discusses the Chinese marketplace, including: the
demographic make-up of the consumer population in China, how
international and domestic businesses choose to market to the
Chinese consumer, international business in China, unsuccessful
marketing campaigns in China, superstitious beliefs and their
effect on certain products marketed in China, Chinese
regulation and its affected on what is allowed to be marketed in
China, the issue of fraudulent and counterfeit products in China,
the decline of foreign investment in China and reasons why, the
Chinese Calendar and how that affects sales, and finally e-
commerce and mobile commerce in China. From this
investigation of the Chinese market the paper seeks to provide a
cursory knowledge of what a company or investor should know
about Chinese markets before investing their money in China.
Introduction
The Chinese marketplace is a bit of a peculiar case for a number
of reasons. Firstly, China is a vast country with many different
dialects and cultural differences, and these different consumer
groups have different behavior (“Chinese Consumer Behavior
Overview”, 2017; “Understanding Chinese Consumers”, 2018).
For several reasons, Chinese consumers have developed
particular things they tend to look for over Western consumers.
Because of a history of fraudulent products in China, for
example, Chinese consumers desire secure platforms such as
WeChat and Tmall with verified and safe products, and strong
customer support. Chinese consumers have become more health
conscious, and more focused on the quality and safety of
products over price. Chinese consumers use the internet and in
particular their phones to purchase products online moreso than
in Western countries, and are doing so at an increasing rate. It
is hard for international brands to compete with domestic ones
in China on the topic of price, but international brands are
certainly capable of competing with domestic Chinese brands
when it comes to providing quality products that are also safe,
which is more what the modern Chinese consumer wants. While
China is a place of much opportunity for international
businesses, the Chinese market is a highly competitive market,
and beset with trademark squatters, fraudulent and counterfeit
products, a government that has engaged in force tech transfers
before allowing foreign companies access to their markets, a
government which was found by a US investigation under the
Trump administration to have instigated cybersecurity attacks
on foreign companies for the purposes of stealing trade secrets
and disrupting their operations, and pernicious government
regulation. These reasons make it an easy market to fail in even
though it is a market with huge potential and growth. These
factors have contributed to falling foreign investment in China.
While China has vowed to address these issues, many
companies aren’t confident that China is serious about
addressing these issues. By understanding these issues, and
what exactly the modern Chinese consumer is looking for when
purchasing a product, it will be easier to successfully market a
product in the Chinese market.
China’s Modern Consumers
According to the Chinese Consumer Behavior Overview (2017)
the average consumer in modern China is in their 20s and early
30s; they tend to buy things not only for themselves but also for
their parents as well; they tend to spend more on entertainment
than older generations and also are more likely to choose to
shop online, with every 1.3 of 10 RMB being spent digitally.
The article says that the majority of these consumers are in
major cities such as Beijing; that Chinese consumers are
increasingly more likely to pay more for what they perceive to
be higher quality products ; the opinions of other consumers
have increased in importance to Chinese consumers when
choosing to purchase a product, as opposed to traditional
advertisement. This group, in their 20s and early 30s, are
projected to be the key consumer group in the next decade
(“Understanding Chinese Consumers”, 2018). This group is
expected to account for 35 percent of all consumer spending in
China in the next five years (“The Chinese Consumer in 2017”,
2017). This is the generation under the now defunct “One-Child
Policy”, so this generation of the Chinese population had more
parental resources invested in them, and probably more money
because of that as well. The Chinese consumer is becoming
more health conscious, and more interested in sports and
exercise (“The Chinese Consumer in 2017”, 2017). Newer
generations are most accessible to advertisement through social
media, and use the internet to influence their purchasing
decisions.
Some more information about some of the changes in the
consumer attitude of the Chinese civilian in the past couple of
years can be seen from Appendix A.
International Business in China
Being an international company base outside of China can give
some advantages in certain areas, sometimes for initially
surprising reasons. Toys, for example, produced by non-
domestic companies in China are more popular for parents to
buy for their kids, because of perception that domestic toy
products may be unsafe for their children (“Chinese Consumer
Behavior Overview”, 2017). This distrust of at least lower -
quality domestic products has impacted the food industry and
other areas of the market, causing for example in the food
industry an increased desire for healthier food and beverage
choices in the market by the consumers (“Chinese Consumer
Behavior Overview”, 2017).
Other benefits might be that it is easier for international
companies to compete against local companies for middle-class,
upper-class and luxury products because of Chinese consumers
have becoming quality-conscience and less price-conscience in
their buying decisions (“Chinese Consumer Behavior
Overview”, 2017)., and in general Chinese consumers earn
higher wages now, rising an average of 11 percent per year
(Balding, C. 2017). China therefore has an increasing middle
and upper class consumer base. An example of international
company marketing to the middle and upper-class in China can
be found in the automobile market, with the Toyota Camry and
Toyota Corolla automobile products, both are which are in the
top ten in the list of best-selling cars in China (Buckley, Peter
& Horn, Sierk. 2009). Toyota’s luxury vehicle division, Lexus,
is also performing quite well in China (Buckley, Peter & Horn,
Sierk. 2009).
Another Japanese company, Shiseido, specializing in personal
care and cosmetic products, also focused on the middle and
upper class consumer market in China. It would obviously be
difficult for most foreign companies to challenge the low prices
of domestic products in China, so a better strategy is to develop
higher end products marketed for the more well-off in China, an
increasing demographic.
Unsuccessful Marketing in China
There are a number of reasons why an international brand might
fail to market themselves well in China. Not only are the
Chinese very different from the Western consumer, but
international have tended to make quite a number of seemingly
quite obvious faux pas with their marketing campaigns in China.
Many prominent Western companies have used incorrectly
translated Chinese, or used the Chinese language in a way that
negatively affected their marketing campaigns. Pepsi, for
example, had a slogan that was supposed to be “come alive with
the Pepsi generation” but was actually translated to “Pepsi will
bring your ancestors back to life” in Chinese (5 Marketing
Translation Mistakes 2017). I found a surprising number of
examples of this happening in China with Western companies.
Companies should be careful to not misrepresent their message
to the Chinese consumer. Another reason is that the purchasing
habits of the Chinese consumer are changing in a way that
might be detrimental to a large corporate conglomerate. Chinese
consumers are becoming more concerned with expressing their
individualism through niche-branding (Lam 2014). There is also
fierce competition from domestic companies in China, which
the Chinese government and private equity firms are very
supportive of, meaning the localization of international brands
is perhaps a good idea (Lam 2014). Companies should be wary
of presenting their product in a traditional manner, and should
potentially consider changing their approach in marketing.
Perhaps some companies should consider a rebranding in the
Chinese market. Adjustments to marketing strategies should be
necessary in all cases.
Superstitions in China and Their Influence on Products and
Marketing
Sometimes traditional superstitious beliefs in China have an
effect on products on the market. An example might be the
popular online video games League of Legends. In that game
players play as “champions” which have their own look and
abilities and so forth. One of the champions in the game,
Karthus, an undead character, used to be appear somewhat as a
clothed skeletal figure. Due to a Chinese superstition involving
showing exposed bones and the remains of the dead, in the
Chinese version of the game his face was censored in the
artwork for the character. Later, when the art for the character
was updated, all versions of the champion in China or otherwise
depicted Karthus without any bones. Similar things have
happened in other games with depictions of the undead, in
particular skeletons, such as in the games World of Warcraft
and Dota 2 (Custer, C. 2014). While a game can just change the
models of certain characters, it would be much harder for
something like the TV series The Walking Dead to deal with
this sort of censorship.
Chinese Government Regulation
The Chinese population itself, or its customs, is however, not
really to blame for the censorship of skeletons and other undead
in media in China. Ghost Story is an example of a Chinese
domestic title with depictions of skeletons, so such depictions
themselves are evidently not strictly forbidden. Rather, the
issue seems to stem from regulation for such products as
provided by the Chinese Ministry of Culture, which forbids
anything that “violates China’s policy or religion by promoting
cults or superstitions”, and it seems that depictions of the
undead seem to be interpreted as promoting superstitions
(Custer, C. 2014). The censorship of skeletons in media in
China could instead then be seen as more of a result of
unreasonable censorship by the Chinese national government
rather than the traditional superstitions themselves. Chinese
regulation can cause a number of issues for companies
marketing their products in China. Toyota, for example, was a
company that was unable to get an early foot in the Chinese
market due to the hindrance of Chinese regulation (Buckley,
Peter & Horn, Sierk 2009). The company was still successfully
able to market its products in China, but clearly Chinese
regulation must be carefully observed before attempting to
launch a product in China, as the regulation might be
unexpectedly unreasonable and have devastating consequences
for a smooth release in China.
Counterfeit Products and Fraud in China
It’s well known that China has a huge problem with counterfeit
products, fraud, and a number of related other issues, such as
trademark squatting, where people will register trademarks the
force rightful owners to purchase back the trademarks from
them, because China awards trademark rights to the party that
files for them first (Plane, D., & Livingston, S. 2017).
Companies might want to take that into account and secure the
trademark for their product early in China to avoid this issue,
even if the brand is not actively used in China. Xinhua news
estimated in 2015 that over $45 billion in fraudulent or
counterfeit products were available on Alibaba’s various
website, including Tmall and Taobao (Plane, D., & Livingston,
S. 2017). In fact, the same source says that, according to the
China Consumers Association, in 2015, “only 37% of examined
goods on Taobao were genuine”. Plane, D., & Livingston, S.
(2017) suggest several preventive steps to combat these
problems, including: choosing a suitable Chinese language
mark, registering the trademark under as many sub-classes as
possible- as in China you can have identical trademarks filed
under different sub-classes, obtaining copyright registrations
and careful monitoring of online databases and e-commerce to
check for any products infringing on any company IP. We
discussed earlier how this problem with counterfeit or
fraudulent goods has caused some changes in Chinese consumer
behavior where the authenticity and safety of a product has
become increasingly important to Chinese consumers.
China’s issue with creating counterfeited products and stealing
technology has even caused US President Trump to put a tariff
on a variety of Chinese goods and services, stating that
following an investigation it found that China helped “support
and conduct cyberattacks on US companies to access trade
secrets” (Clark, G., & Hagan, S. 2018). This would suggest that
not only is China ignoring issues with IP and technology theft
against foreign companies, but seemingly even actively
encouraging it, or the one perpetrating it, which would suggest
that China is probably not going to change its attitude very soon
on these issues. If China feels that it is in a position to take
advantage from this IP theft from international companies, it
seems that it would be happy to do so. If a business were to
setup a branch in China, it might do well to take extra security
precautions, most specifically cybersecurity precautions, to
make sure unwanted information about the company and its
products is not stolen. Clark, G., & Hagan, S. (2018) from
Bloomberg did however say that Chinese President Xi Jinping
called for stricter enforcement against trademark and copyright
infringement in 2017, and that Premier Li Keqiang promised to
“protect the rights of foreigners investing in its economy”, so
perhaps they’ll begin taking these issues more seriously, but the
Chinese regime has had a history of saying a variety of things
and doing a variety of other things. The CCP (Chinese
Communist Party) is certainly not a very trustworthy source.
This state of affairs makes doing business in China is very
frustrating for companies as they will have to deal with
competing fraudulent products in the market, and deal with a
government which does not seem like it will address these
issues any time soon.
Foreign Investment in China
Despite China being a country with huge economic potential
now and in the future, foreign investment in China is on a
decline. From the year 2008 to the year 2008 foreign direct
invest grew at a rate of 10.8 percent per year, however since
2008 foreign investment has only increased at a rate of 4
percent per year (Balding, C. 2017). One of the reasons is
definitely the state of affairs discussed above, where
counterfeited products and intellectual property theft cost
companies in China millions in potential profit. Another reason
however is that the government of China has policies that are
foreign unfriendly, and according to article published by
Fortune in 2017, seemingly increasingly so. The article states
that “80% of members of a US business lobby (in China)”
agreed that “foreign companies are less welcome than in the
past (in China)”, with most saying “they have little confidence
in China’s vow to open its markets” (“Foreign Firms in China
Say They Are Less Welcome Than in the Past”, 2017). The same
article said however that companies would be willing to
“significantly increase investment” if China fixed some of its
discriminatory practices and foreign investment restrictions.
China has made some steps in this direction. China reduced
some of the market entry restrictions for foreign companies in
2017 in areas such as transport services and auditing and
shortened the list of sectors foreign investors are not allowed to
invest in (Wu, W. 2017). China also vowed to end forced tech
transfer in 2018 in the manufacturing sector (Wu, W. 2018).
Foreign companies were apparently forced by Chinese officials
to reveal their some of their technology in order to gain access
to Chinese markets (Wu, W. 2018), which is not something most
companies would be willing to tolerate without the promise of
substantial return. Foreign investment in China is, however,
still on the decline. The Chinese government however is
probably going to need to take more substantial action
ameliorate the situation of falling foreign investment, if it truly
wishes to address the issue. China clearly has a policy of
putting domestic interests first, and while that’s certainly
understandable, the country might need to be careful not to
strain foreign relations in a way that is to counter-productive to
that end. The country seems to have perhaps made the
realization that some of these practices, such as forced tech
transfer, is doing more damage to China’s economy than it is
helping it.
Chinese Calendar
The Chinese Calendar is important to understand when it comes
to business in China. Events such as the Spring Festival
(Chinese New Year), Children’s Day, Autumn Moon Festival,
Singles Day for e-commerce, and so forth play an impact on
when Chinese consumers will spend money and what they are
likely to spend it on. Valentine’s day for example is a day
where products and services targeted at couples are likely to
sell well, so marketing is done around that time of year to grab
the attention of couples. China peculiarly has a Singles Day
which is the direct opposite of Valentine’s and targets single
men. It generated twice the revenue compared to Cyber Monday
in the US in the last two years (“Understand the Chinese
Consumer”, 2014). People are more likely to spend their money
on certain products depending on the holiday, and after a
holiday such as the Spring Festival, have more money in their
pocket to spend because of a tradition associated with that
holiday involving gifting money. When choosing when to
market products and services, it would wise to keep these
holidays in mind in order to achieve more effective marketing,
along probably with other aspects of Chinese culture and
tradition.
E-Commerce in China
In the US, recent companies like Amazon demonstrate the
potential of e-commerce, being one of the top 10 fastest
growing companies in the world (“100-fastest-growing-
companies” 2018). As the world becomes more digitized, so
will more money be spent online rather offline in traditional
retail experiences. There are some very interesting aspects of
the Chinese e-commerce markets that is very unlike the e-
commerce markets in the Western world.
E-commerce is growing rapidly in China, and China has become
the largest e-commerce market in the world (“eCommerce in
China - the future is already here”, 2017). The same report said
E-commerce totaled around 1.4 trillion yuan in the first quarter
of 2017, up 32% from last year, and that mobile commerce was
huge in China. In fact, Appendix B shows that around 64% of
all e-commerce happened through a mobile device in China in
Q4 2015. It’s interesting that mobile commerce is so big in
China, but is less popular in the west. A reason for this is the
use of WeChat Wallet. WeChat is the largest social network in
China (“Why Mcommerce in China is the Future of
Ecommerce”, 2018). The article says that companies can make a
WeChat store linked to their offical account. and all interactions
are handled through WeChat itself. The article also states the
importance of QR codes in China, which are another reason
mobile devices are the favored method of e-commerce in China.
These QR codes will bring people to the WeChat store page on
their mobile device, where they can purchase products using
their WeChat wallet. These innovations in the Chinese market
make it easy to understand how e-commerce and mobile
commerce are so popular there. It is very easy for the Chinese
consumer to see a product they would like to buy on a billboard
or something, scan the QR code with their phone, be brought to
a specialized WeChat store page provided by the company and
easily make a purchase. A company wishing to do business in
China would do well to have a WeChat account, with a
specialized store page. In addition, the official Chinese
webpage for a company should be easily accessible for mobile
users and optimized for Chinese characters. It should look
official, otherwise Chinese consumers, who have to deal with
reality of counterfeit products and fraudulent businesses might
feel unsafe and decide not to buy the product. In offline
advertisements, companies should take advantage of the Chinese
consumer’s proclivity for QR codes to help users easily access
their content.
In China, T-Mall is the largest digital marketplace
(“eCommerce in China - the future is already here”, 2017), and
accounts for about half of all e-commerce sales, making it
analogous to Amazon for its size here in the United States,
although Amazon also operates in China, but is a much smaller
player there than other domestic players. Unlike Amazon, Tmall
has a similar system to the WeChat store pages discussed where
companies can customize the user experience and offer other
products to the user through their store page, in a similar sort of
fashion to an actual mall. This suggests that it is more important
that having engaging web design is more important for
companies operating in China over companies operating in the
West. In the West, the product might be listed on Amazon or
wherever and web design in less important, but in China,
providing an enticing and appropriate virtual experience seems
to be of a much higher priority.
Conclusion
There are many aspect and challenges to consider when
marketing in China. It is a marketplace that differs from typical
Western markets for a variety of reasons, not only because of its
location, culture, and consumer behaviors which is in contrast
to that of Western markets, but a number of unique challenges
and circumstances associated with the country: The country’s
widespread and diverse demographics, its rapidly transforming
and growing middle and upper-class consumer base, its
oppressive government and its regulations, the same
government’s disinterest in dealing with counterfeit, fraudulent
products, and intellectual property theft, its unique set of
holidays, and the countries interest in digital market
experiences. With a growing middle and upper-class consumer
base the Chinese market is a market with some great potential
for international businesses, who should have an easier time
competing for a consumer base that has more money, and who
have a higher focus on quality and safety compared to previous
generations. However, “discriminatory” practices against
foreign companies by the Chinese government, such as forced
technology transfers, along with the problem of intellectual
property theft seem to be discouraging foreign investment in
China, and foreign investment in China has been decreasing
even though the Chinese market is a market with massive
potential. While China has vowed to deal with these issues,
many aren’t convinced. China seems to have done away with
some of its more egregious practices, such as forced tech
transfer, but it doesn’t seem to be fully willing to commit to
giving up its total control. Companies should be prepared to not
only adapt to China’s unique consumer behaviors, but to also
deal with the challenges of regulation, poorly thought-out
trademark laws, poorly thought-out laws in general, such as the
law that has been used to prohibit foreign companies from
displaying boned variations of the undead, a country that is
willing to steal from and stifle foreign companies for the sake
of what it perceives as Chinese interests, and a country rife with
trademark and copyright infringers seeking to steal intellectual
property and take away potential profit.
References
5 Marketing Translation Mistakes. (2017, April 19). Retrieved
April 20, 2018, from
https://www.translatemedia.com/translation-blog/5-marketing-
translation-mistakes/
100-fastest-growing-companies. (n.d.). Retrieved April 21,
2018, from
http://fortune.com/100-fastest-growing-companies
Balding, C. (2017, August 30). China Realizes It Needs Foreign
Companies. Bloomberg.
Retrieved
April 22, 2018, from bloomberg.com
Buckley, Peter & Horn, Sierk. (2009). Japanese Multinational
Enterprises in China: Successful Adaptation of Marketing
Strategies. Long Range Planning - LONG RANGE PLANN. 42.
495-517.
Chinese Consumer Behavior Overview. (2017, May 22).
Retrieved April 18, 2018, from
https://chozan.co/2017/04/18/chinese-consumer-behavior-
overview/
Clark, G., & Hagan, S. (2018, March 22). What’s Intellectual
Property and Does China Steal It? Bloomberg. Retrieved April
22, 2018, from bloomberg.com
Custer, C. (2014, July 1). China doesn’t censor skeletons.
Retrieved April 19, 2018, from
https://www.techinasia.com/china-doesnt-censor-skeletons-the-
truth-about-game-censorship-in-the-middle-kingdom
eCommerce in China - the future is already here. (2017).
Retrieved April 21, 2018, from
https://www.pwccn.com/en/retail-and-
consumer/publications/total-retail-2017-china/total-retail-
survey-2017-china-cut.pdf
Lam, A. (2014, November 12). 7 reasons why big international
brands fail in China. Retrieved April 20, 2018, from
http://www.marketing-interactive.com/7-reasons-why-big-
international-brands-fail-in-china/
Plane, D., & Livingston, S. (2017, May 18). Procedures and
strategies for anti-counterfeiting: China. Retrieved April 21,
2018, from
http://www.worldtrademarkreview.com/Intelligence/Anti-
counterfeiting/2017/Country-chapters/China
Foreign Firms in China Say They Are Less Welcome Than in
the Past. Fortune. (2017, January 18). Retrieved April 22, 2018,
from fortune.com
The Chinese Consumer in 2017: The Lifestyle Upgrade. (2017,
October 13). Retrieved April 22, 2018, from https://www.credit-
suisse.com/corporate/en/articles/news-and-expertise/the-
chinese-consumer-in-2017-the-lifestyle-upgrade-201710.html
Understanding Chinese Consumers. (2018, April 20). Retrieved
April 18, 2018, from
https://www.chinabusinessreview.com/understanding-chinese-
consumers/
Understand the Chinese Consumer. (2014.). Retrieved April 18
2018, from
http://go.channeladvisor.com/rs/485-FSD-368/images/us-ebook-
understanding-chinese-consumer.pdf
Wu, W. (2018, March 21). China vows to end forced tech
transfers in manufacturing sector. South China Morning Post.
Retrieved April 22, 2018, from scmp.com
Wu, W. (2017, July 17). Foreign companies dissatisfied with
China’s slow progress in opening up investment markets. South
China Morning Post. Retrieved April 22, 2018, from scmp.com
Why Mcommerce in China is the Future of ECommerce. (2018,
February 24). Retrieved April 21, 2018, from
https://www.marketingtochina.com/ mcommerce-china-future-
ecommerce/
Appendices
Appendix A
Chinese Consumer Behavior Overview (2017)
Appendix B
Week Two - Guidance
Hello Class!
It was nice getting to know you through your
introduction and your week one discussion question postings.
Remember as you prepare your discussion posts, that to receive
full credit you must include at least 2 citations of scholarly
support to your answers for each discussion post (ie. Discussion
One - 2 citations, Discussion Two - 2 citations). You can use
your textbook as scholarly support, and remember to include a
reference for the support cited. You should state your ideas and
answers then follow them with support and a citation (author,
year, page number). Also make sure your original post is at
least 200 words long. Please let me know if you have any
questions on this. In this second week of class we will be
discussing the government’s role in energy and U.S. oil imports.
You also have two assignments this week. The first assignment
is numerical where a cover page and references are not needed,
but you have to show your work and not just provide answers to
receive full credit. The second assignment is conceptual which
does require references and a reference page to receive full
credit. Similar to week one I highly suggest you use the
questions as headings to make sure all of the questions are
addressed. On to our week two topics.
For your first discussion you will be reviewing
renewable and non-renewable sources of energy and the
government’s role (if any) of providing efficiencies with these
sources of energy. You will select one example of each source
in your answer and discuss how the government may play a role
in bringing about an efficient market for your selected sources
of renewable and non-renewable energy. Tietenberg and Lewis
(2012) give an example of government’s involvement with
natural gas price controls (Price ceilings) and the issues that
resulted from that, “The source of the problem can be traced
directly to government controls over natural gas prices” (p.
142). The authors go into further details, “The ceilings would
prevent prices from reaching their normal levels. Since price
increases are the source of the incentive to conserve, the lower
the prices would cause more of the resource to be used in earlier
years” (p. 142). The authors then describe issues with supply
and demand with the price ceiling set by the government (make
sure to review chapter seven for these points).
Your week two discussion is on U.S. oil imports and
potential vulnerability. Tietenberg and Lewis (2012) provide an
interesting debate on this in chapter seven. The authors
described two political figures views on oil and how, “Over the
long run, both candidates favored a transition to a greater
reliance on hydrogen as an alternative fuel” (p. 154). You will
discuss this topic along with OPEC’s (Organization of
Petroleum Exporting Countries) role in the oil industry along
with the cartel problem. Attached is an article that further
discusses OPEC.
Your first assignment again is numeric based and
involves efficient allocation including dynamic efficient
allocation. Tietenberg and Lewis (2012) explain dynamic
efficiency in chapter five as, “Dynamic efficiency balances
present and future uses of a deplete resource by maximizing the
present value of the net benefits derived from its use” (p. 103).
The numerical example referred to in the assignment is on page
103 of the text under the Two-Period Model section. Make sure
to review the concepts and examples provided while answering
this question. Also if you have any specific questions make
sure to e-mail me before the assignment is due.
Your second question is conceptually based and as
stated in the beginning of the guidance, references (ideally two)
and a reference page is required. Make sure to use the
questions as headings to enhance the organization of your
answer. Pay particular attention to chapter six as Tietenberg
and Lewis (2012) review depletable resource allocation over
time.
Remember that your initial postings are due on Thurs.
4/9, and to respond to your fellow students' initial postings
during the week. Your written assignments and responses are
due on Monday 4/13. Keep up the good work!
References
Tietenberg, T., & Lewis, L. (2012). Environmental and natural
resource economics (9th ed.). Upper Saddle River, NJ: Pearson
Addison-Wesley. ISBN: 9780131392595
Week 2 Assignment - Cost-Depletable Resources
PLEASE DO NOT SUBMIT A BID FOR THIS ASSIGNMENT
IF YOU DO NOT HAVE EXPERIENCE WITH GRADUATE
LEVEL WRITING TERMS AND CONCEPTS. ALL
DIRECTIONS MUST BE FOLLOWED AND NO PLAGIARISM.
MY SCHOOL USES SOFTWARE TO DETECT COPIED
MATERIAL.
Consider an increasingly marginal cost-depletable resource with
no effective substitute. Describe how the user cost for this
resource in the earlier time periods would depend on whether
the demand curve for that resource was stable or shifting
outward over time. Evaluate how the allocation of that resour ce
over time would be affected.
You must develop a two-page paper (not including title and
reference pages) and be formatted according to APA style
guidelines. You need to use two scholarly sources, in addition
to the textbook, to support your assertions.
Rubric
For Research Paper
Criterion
DUE PRIOR TO 11:59PM CST ON
SUNDAY MAY 3rd
Unsatisfactory-C or < C
31.9 – 28.0 Points or less Points
Satisfactory- B
35.9 –32.0 Points
Exceptional – A
40.0 – 36.0 Points
Preparing the submittal of the assignment.
Did not meet Satisfactory criterion.
Met the minimum requirements of the assignment plus addition
effort– See below.
Exceptional assignment over and above Satisfactory
criterion.>12 pages of text
Basic Requirements
1. Extent of coverage
1. Authority and accuracy of sources
1. Demonstrated research outside text.
TURNITIN
Turnitin % is greater than 25%-Plagiarism
Did not meet Satisfactory requirements. Was not Submitted by
turn-in deadline (Zero points if late).
No objective reference sources were used. Sources cannot be
verified.
* Citation
Submittal has 10 plus full text pages of text from top to bottom
margin.
Submittal Had:
Title page
Table of Contents
Abstract
Text 10 plus full text pages
References (8)
Appendix
Zero points recorded for submittal
Submittal percentage was less than 25%. If submittal is greater
than 25% then submittal is classified as plagiarism and
accordingly assigned zero points. If percentage is greater than
25% then student has not written the assignment in their own
words.
Submittal Had:
Title page
Table of Contents
Abstract
Text ( Submittal was less than 12 plus full pages from top to
bottom margin but was at least 11 plus Full double spaced pages
of text pages from top to bottom margin. Did not have bullet
dot inserts nor numbered outline with the text.
References (Minimum of 9)
Appendix
.
In addition to meeting Satisfactory requirements, ,
research/materials include tables, charts and/or graphs with
explanations.
Text 12 plus Full text pages from top to bottom margin
Extensive literature review with multiple types of sources;
demonstrating a superior variety of media formats were
used/cited.
References (Minimum of 10)
Appendix
Appendix
Appendix included table/charts that were individual created.
No cut and paste appendix.
Less points if submittal had less than 8 pages of text.
NO APPENDIX
Grading of Submittals lacking an Appendix will automatically
begin at 28.0 points before other deductions are made for
deficits not included within the submittal.
Appendix had quantitative data
In addition to meeting the requirements of Satisfactory, had a
matrix to support and supplement the criterion of the
assignment...
Guidelines for Research paper
The Research Paper will be on an International Management and
Business topic that is very important to the culture, climate and
operational needs within the International activity. An email
will be sent to the student’s individual email with the topic’s
name DURING THE SECOND WEEK OF THE COURSE. D2L
WILL PROVIDE ME NOTIFICATION IF YOU RECEIVED IT.
Below is your assigned topic:
“Global Cultural Differences “
RESEARCH PAPER ON AN INTERNATIONAL
MANAGEMENT
AND BUSINESS TOPIC. (40% OF TOTAL COURSE GRADE)
DUE DATE May 3rd, 2020.
Below are some extractions from the objectives of the course as
stated in the syllabus:
The impact of the Covid-19 Virus has already and will have
major impact on the ways that organizations, entities and
countries interact with one another in the future. Today we are
seeing and experiencing major process changes to local supply
chain management and many of these processes will remain
after we return with the control of the Virus and its expansion.
Think about the process changes to grocery stores, fast food
operations, many services activities, as well as banking, car
buying in addition to the immediate changes to education.
For the most part you are only seeing the immediate impact on
education with the delivery of education as well as the support
functions. Daily and continuing it is impacting the total
infrastructure and processes which exist within the functions
and activities of the education environment.
So, as you begin finalizing your research for your topic and
start drafting please keep in mind the recent impact and future
implications that you should be incorporating into your
Research paper topic.
For instance:
· an outlook on future growth and expansion.
· background for international trade and investment activities
and the international economic activity of nations and the
balance of payments.
· Development of a working knowledge of the international
monetary system, financial markets, and trend toward economic
integration around the world as well as achieving an
understanding of the political and legal dimensions that affect
international business.
Each of these areas should be addressed within your Research
paper Topic as the above will have an impact on your functional
area or geographic area which is your Research paper topic.
DURING THE SECOND WEEK OF THE COURSE.
D2L WILL PROVIDE ME NOTIFICATION IF YOU
RECEIVED IT. The paper must use APA style (AN EXAMPLE
OF APA FORMATTING WILL BE PROVIDED) and have a
minimum of 15 pages (full page text from top to bottom margin
– these pages are in addition to the Cover page, Table of
Contents page, Abstract page, Reference page and Appendix
page) with a minimum of 10 references in the reference page.
Please review the Research paper rubric which will be provided
IN THE DOCUMENTS SHARING FILES. PAY EXTREME
ATTENTION TO THE VALUE OF THE APPENDIX. The due
date will be Sunday, May 3th. There will not be any exceptions
or extensions for the due date and time because you will have
had 13 weeks to work on it.
Turnitin Tool
The Research Paper will be reviewed by the research tool
Turnitin. Instructor’s cut-off acceptance is less than 25%. If
your submittal reflects a Turnitin percentage higher than 25%,
then the assignment will be viewed and graded as a plagiarism
submittal and assigned zero points. Accordingly, you should
avoid any cut and paste and write your assignment in your own
words. Avoid multiple words and continual words within a
phrase, sentence, or paragraph from reference sources which
will activate the Turnitin indicator of use of other authors or
sources of copyrighted work. Also, avoid cut and paste from
previous course assignments as this will also increase your
Turnitin percentage. To review your work and the percentage
calculation, post your submittal earlier than the cut-off date and
time. It will reflect the percentage. Therefore, if you have a
high percentage you can rework and replace sentences, etc. into
your onwards. Then, post your assignment again prior to the
cut-off date and time. Instructor will grade the last posted
submittal prior to the cut-off day and time. Any submittal
posted after the cut-off date and time will not be graded. If the
late submittal is the only submittal then accordingly it will be
assigned zero points. Thus, submit early instead of waiting
until the “last minute.” Also, please do not email me as to why
your percentage is greater than 25%. All you have to do is click
on the “color” of Turnitin and it will list all the sources/reasons
as to why your percentage is causing the over 25% and you can
go back and correct your causes of the percentage. Please
review the Graduate Student Handbook on the potential
consequences of submitting a submittal that is
21China - MarketplaceTexas A&M-CommerceIn partial fulfillm

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21China - MarketplaceTexas A&M-CommerceIn partial fulfillm

  • 1. 21 China - Marketplace Texas A&M-Commerce In partial fulfillment of the requirements for MGT 380 Professor Lloyd M. Basham April 22, 2018 Table of Contents Abstract 3 Introduction 4 China’s Modern Consumers
  • 2. 5 International Business in China 6 Unsuccessful Marketing in China 7 Superstitions in China and Their Influence on Products and Marketing 8 Chinese Government Regulation
  • 3. 9 Counterfeit Products and Fraud in China 10 Foreign Investment in China 11 Chinese Calendar 13 E-Commerce in China
  • 5. 22 Appendix B 23 Abstract This paper discusses the Chinese marketplace, including: the demographic make-up of the consumer population in China, how international and domestic businesses choose to market to the Chinese consumer, international business in China, unsuccessful marketing campaigns in China, superstitious beliefs and their effect on certain products marketed in China, Chinese regulation and its affected on what is allowed to be marketed in China, the issue of fraudulent and counterfeit products in China, the decline of foreign investment in China and reasons why, the Chinese Calendar and how that affects sales, and finally e- commerce and mobile commerce in China. From this investigation of the Chinese market the paper seeks to provide a cursory knowledge of what a company or investor should know about Chinese markets before investing their money in China. Introduction
  • 6. The Chinese marketplace is a bit of a peculiar case for a number of reasons. Firstly, China is a vast country with many different dialects and cultural differences, and these different consumer groups have different behavior (“Chinese Consumer Behavior Overview”, 2017; “Understanding Chinese Consumers”, 2018). For several reasons, Chinese consumers have developed particular things they tend to look for over Western consumers. Because of a history of fraudulent products in China, for example, Chinese consumers desire secure platforms such as WeChat and Tmall with verified and safe products, and strong customer support. Chinese consumers have become more health conscious, and more focused on the quality and safety of products over price. Chinese consumers use the internet and in particular their phones to purchase products online moreso than in Western countries, and are doing so at an increasing rate. It is hard for international brands to compete with domestic ones in China on the topic of price, but international brands are certainly capable of competing with domestic Chinese brands when it comes to providing quality products that are also safe, which is more what the modern Chinese consumer wants. While China is a place of much opportunity for international businesses, the Chinese market is a highly competitive market, and beset with trademark squatters, fraudulent and counterfeit products, a government that has engaged in force tech transfers before allowing foreign companies access to their markets, a government which was found by a US investigation under the Trump administration to have instigated cybersecurity attacks on foreign companies for the purposes of stealing trade secrets and disrupting their operations, and pernicious government regulation. These reasons make it an easy market to fail in even though it is a market with huge potential and growth. These factors have contributed to falling foreign investment in China. While China has vowed to address these issues, many companies aren’t confident that China is serious about addressing these issues. By understanding these issues, and what exactly the modern Chinese consumer is looking for when
  • 7. purchasing a product, it will be easier to successfully market a product in the Chinese market. China’s Modern Consumers According to the Chinese Consumer Behavior Overview (2017) the average consumer in modern China is in their 20s and early 30s; they tend to buy things not only for themselves but also for their parents as well; they tend to spend more on entertainment than older generations and also are more likely to choose to shop online, with every 1.3 of 10 RMB being spent digitally. The article says that the majority of these consumers are in major cities such as Beijing; that Chinese consumers are increasingly more likely to pay more for what they perceive to be higher quality products ; the opinions of other consumers have increased in importance to Chinese consumers when choosing to purchase a product, as opposed to traditional advertisement. This group, in their 20s and early 30s, are projected to be the key consumer group in the next decade (“Understanding Chinese Consumers”, 2018). This group is expected to account for 35 percent of all consumer spending in China in the next five years (“The Chinese Consumer in 2017”, 2017). This is the generation under the now defunct “One-Child Policy”, so this generation of the Chinese population had more parental resources invested in them, and probably more money because of that as well. The Chinese consumer is becoming more health conscious, and more interested in sports and exercise (“The Chinese Consumer in 2017”, 2017). Newer generations are most accessible to advertisement through social media, and use the internet to influence their purchasing decisions. Some more information about some of the changes in the consumer attitude of the Chinese civilian in the past couple of years can be seen from Appendix A. International Business in China Being an international company base outside of China can give some advantages in certain areas, sometimes for initially surprising reasons. Toys, for example, produced by non-
  • 8. domestic companies in China are more popular for parents to buy for their kids, because of perception that domestic toy products may be unsafe for their children (“Chinese Consumer Behavior Overview”, 2017). This distrust of at least lower - quality domestic products has impacted the food industry and other areas of the market, causing for example in the food industry an increased desire for healthier food and beverage choices in the market by the consumers (“Chinese Consumer Behavior Overview”, 2017). Other benefits might be that it is easier for international companies to compete against local companies for middle-class, upper-class and luxury products because of Chinese consumers have becoming quality-conscience and less price-conscience in their buying decisions (“Chinese Consumer Behavior Overview”, 2017)., and in general Chinese consumers earn higher wages now, rising an average of 11 percent per year (Balding, C. 2017). China therefore has an increasing middle and upper class consumer base. An example of international company marketing to the middle and upper-class in China can be found in the automobile market, with the Toyota Camry and Toyota Corolla automobile products, both are which are in the top ten in the list of best-selling cars in China (Buckley, Peter & Horn, Sierk. 2009). Toyota’s luxury vehicle division, Lexus, is also performing quite well in China (Buckley, Peter & Horn, Sierk. 2009). Another Japanese company, Shiseido, specializing in personal care and cosmetic products, also focused on the middle and upper class consumer market in China. It would obviously be difficult for most foreign companies to challenge the low prices of domestic products in China, so a better strategy is to develop higher end products marketed for the more well-off in China, an increasing demographic. Unsuccessful Marketing in China There are a number of reasons why an international brand might fail to market themselves well in China. Not only are the Chinese very different from the Western consumer, but
  • 9. international have tended to make quite a number of seemingly quite obvious faux pas with their marketing campaigns in China. Many prominent Western companies have used incorrectly translated Chinese, or used the Chinese language in a way that negatively affected their marketing campaigns. Pepsi, for example, had a slogan that was supposed to be “come alive with the Pepsi generation” but was actually translated to “Pepsi will bring your ancestors back to life” in Chinese (5 Marketing Translation Mistakes 2017). I found a surprising number of examples of this happening in China with Western companies. Companies should be careful to not misrepresent their message to the Chinese consumer. Another reason is that the purchasing habits of the Chinese consumer are changing in a way that might be detrimental to a large corporate conglomerate. Chinese consumers are becoming more concerned with expressing their individualism through niche-branding (Lam 2014). There is also fierce competition from domestic companies in China, which the Chinese government and private equity firms are very supportive of, meaning the localization of international brands is perhaps a good idea (Lam 2014). Companies should be wary of presenting their product in a traditional manner, and should potentially consider changing their approach in marketing. Perhaps some companies should consider a rebranding in the Chinese market. Adjustments to marketing strategies should be necessary in all cases. Superstitions in China and Their Influence on Products and Marketing Sometimes traditional superstitious beliefs in China have an effect on products on the market. An example might be the popular online video games League of Legends. In that game players play as “champions” which have their own look and abilities and so forth. One of the champions in the game, Karthus, an undead character, used to be appear somewhat as a clothed skeletal figure. Due to a Chinese superstition involving showing exposed bones and the remains of the dead, in the Chinese version of the game his face was censored in the
  • 10. artwork for the character. Later, when the art for the character was updated, all versions of the champion in China or otherwise depicted Karthus without any bones. Similar things have happened in other games with depictions of the undead, in particular skeletons, such as in the games World of Warcraft and Dota 2 (Custer, C. 2014). While a game can just change the models of certain characters, it would be much harder for something like the TV series The Walking Dead to deal with this sort of censorship. Chinese Government Regulation The Chinese population itself, or its customs, is however, not really to blame for the censorship of skeletons and other undead in media in China. Ghost Story is an example of a Chinese domestic title with depictions of skeletons, so such depictions themselves are evidently not strictly forbidden. Rather, the issue seems to stem from regulation for such products as provided by the Chinese Ministry of Culture, which forbids anything that “violates China’s policy or religion by promoting cults or superstitions”, and it seems that depictions of the undead seem to be interpreted as promoting superstitions (Custer, C. 2014). The censorship of skeletons in media in China could instead then be seen as more of a result of unreasonable censorship by the Chinese national government rather than the traditional superstitions themselves. Chinese regulation can cause a number of issues for companies marketing their products in China. Toyota, for example, was a company that was unable to get an early foot in the Chinese market due to the hindrance of Chinese regulation (Buckley, Peter & Horn, Sierk 2009). The company was still successfully able to market its products in China, but clearly Chinese regulation must be carefully observed before attempting to launch a product in China, as the regulation might be unexpectedly unreasonable and have devastating consequences for a smooth release in China. Counterfeit Products and Fraud in China It’s well known that China has a huge problem with counterfeit
  • 11. products, fraud, and a number of related other issues, such as trademark squatting, where people will register trademarks the force rightful owners to purchase back the trademarks from them, because China awards trademark rights to the party that files for them first (Plane, D., & Livingston, S. 2017). Companies might want to take that into account and secure the trademark for their product early in China to avoid this issue, even if the brand is not actively used in China. Xinhua news estimated in 2015 that over $45 billion in fraudulent or counterfeit products were available on Alibaba’s various website, including Tmall and Taobao (Plane, D., & Livingston, S. 2017). In fact, the same source says that, according to the China Consumers Association, in 2015, “only 37% of examined goods on Taobao were genuine”. Plane, D., & Livingston, S. (2017) suggest several preventive steps to combat these problems, including: choosing a suitable Chinese language mark, registering the trademark under as many sub-classes as possible- as in China you can have identical trademarks filed under different sub-classes, obtaining copyright registrations and careful monitoring of online databases and e-commerce to check for any products infringing on any company IP. We discussed earlier how this problem with counterfeit or fraudulent goods has caused some changes in Chinese consumer behavior where the authenticity and safety of a product has become increasingly important to Chinese consumers. China’s issue with creating counterfeited products and stealing technology has even caused US President Trump to put a tariff on a variety of Chinese goods and services, stating that following an investigation it found that China helped “support and conduct cyberattacks on US companies to access trade secrets” (Clark, G., & Hagan, S. 2018). This would suggest that not only is China ignoring issues with IP and technology theft against foreign companies, but seemingly even actively encouraging it, or the one perpetrating it, which would suggest that China is probably not going to change its attitude very soon on these issues. If China feels that it is in a position to take
  • 12. advantage from this IP theft from international companies, it seems that it would be happy to do so. If a business were to setup a branch in China, it might do well to take extra security precautions, most specifically cybersecurity precautions, to make sure unwanted information about the company and its products is not stolen. Clark, G., & Hagan, S. (2018) from Bloomberg did however say that Chinese President Xi Jinping called for stricter enforcement against trademark and copyright infringement in 2017, and that Premier Li Keqiang promised to “protect the rights of foreigners investing in its economy”, so perhaps they’ll begin taking these issues more seriously, but the Chinese regime has had a history of saying a variety of things and doing a variety of other things. The CCP (Chinese Communist Party) is certainly not a very trustworthy source. This state of affairs makes doing business in China is very frustrating for companies as they will have to deal with competing fraudulent products in the market, and deal with a government which does not seem like it will address these issues any time soon. Foreign Investment in China Despite China being a country with huge economic potential now and in the future, foreign investment in China is on a decline. From the year 2008 to the year 2008 foreign direct invest grew at a rate of 10.8 percent per year, however since 2008 foreign investment has only increased at a rate of 4 percent per year (Balding, C. 2017). One of the reasons is definitely the state of affairs discussed above, where counterfeited products and intellectual property theft cost companies in China millions in potential profit. Another reason however is that the government of China has policies that are foreign unfriendly, and according to article published by Fortune in 2017, seemingly increasingly so. The article states that “80% of members of a US business lobby (in China)” agreed that “foreign companies are less welcome than in the past (in China)”, with most saying “they have little confidence
  • 13. in China’s vow to open its markets” (“Foreign Firms in China Say They Are Less Welcome Than in the Past”, 2017). The same article said however that companies would be willing to “significantly increase investment” if China fixed some of its discriminatory practices and foreign investment restrictions. China has made some steps in this direction. China reduced some of the market entry restrictions for foreign companies in 2017 in areas such as transport services and auditing and shortened the list of sectors foreign investors are not allowed to invest in (Wu, W. 2017). China also vowed to end forced tech transfer in 2018 in the manufacturing sector (Wu, W. 2018). Foreign companies were apparently forced by Chinese officials to reveal their some of their technology in order to gain access to Chinese markets (Wu, W. 2018), which is not something most companies would be willing to tolerate without the promise of substantial return. Foreign investment in China is, however, still on the decline. The Chinese government however is probably going to need to take more substantial action ameliorate the situation of falling foreign investment, if it truly wishes to address the issue. China clearly has a policy of putting domestic interests first, and while that’s certainly understandable, the country might need to be careful not to strain foreign relations in a way that is to counter-productive to that end. The country seems to have perhaps made the realization that some of these practices, such as forced tech transfer, is doing more damage to China’s economy than it is helping it. Chinese Calendar The Chinese Calendar is important to understand when it comes to business in China. Events such as the Spring Festival (Chinese New Year), Children’s Day, Autumn Moon Festival, Singles Day for e-commerce, and so forth play an impact on when Chinese consumers will spend money and what they are likely to spend it on. Valentine’s day for example is a day where products and services targeted at couples are likely to sell well, so marketing is done around that time of year to grab
  • 14. the attention of couples. China peculiarly has a Singles Day which is the direct opposite of Valentine’s and targets single men. It generated twice the revenue compared to Cyber Monday in the US in the last two years (“Understand the Chinese Consumer”, 2014). People are more likely to spend their money on certain products depending on the holiday, and after a holiday such as the Spring Festival, have more money in their pocket to spend because of a tradition associated with that holiday involving gifting money. When choosing when to market products and services, it would wise to keep these holidays in mind in order to achieve more effective marketing, along probably with other aspects of Chinese culture and tradition. E-Commerce in China In the US, recent companies like Amazon demonstrate the potential of e-commerce, being one of the top 10 fastest growing companies in the world (“100-fastest-growing- companies” 2018). As the world becomes more digitized, so will more money be spent online rather offline in traditional retail experiences. There are some very interesting aspects of the Chinese e-commerce markets that is very unlike the e- commerce markets in the Western world. E-commerce is growing rapidly in China, and China has become the largest e-commerce market in the world (“eCommerce in China - the future is already here”, 2017). The same report said E-commerce totaled around 1.4 trillion yuan in the first quarter of 2017, up 32% from last year, and that mobile commerce was huge in China. In fact, Appendix B shows that around 64% of all e-commerce happened through a mobile device in China in Q4 2015. It’s interesting that mobile commerce is so big in China, but is less popular in the west. A reason for this is the use of WeChat Wallet. WeChat is the largest social network in China (“Why Mcommerce in China is the Future of Ecommerce”, 2018). The article says that companies can make a WeChat store linked to their offical account. and all interactions are handled through WeChat itself. The article also states the
  • 15. importance of QR codes in China, which are another reason mobile devices are the favored method of e-commerce in China. These QR codes will bring people to the WeChat store page on their mobile device, where they can purchase products using their WeChat wallet. These innovations in the Chinese market make it easy to understand how e-commerce and mobile commerce are so popular there. It is very easy for the Chinese consumer to see a product they would like to buy on a billboard or something, scan the QR code with their phone, be brought to a specialized WeChat store page provided by the company and easily make a purchase. A company wishing to do business in China would do well to have a WeChat account, with a specialized store page. In addition, the official Chinese webpage for a company should be easily accessible for mobile users and optimized for Chinese characters. It should look official, otherwise Chinese consumers, who have to deal with reality of counterfeit products and fraudulent businesses might feel unsafe and decide not to buy the product. In offline advertisements, companies should take advantage of the Chinese consumer’s proclivity for QR codes to help users easily access their content. In China, T-Mall is the largest digital marketplace (“eCommerce in China - the future is already here”, 2017), and accounts for about half of all e-commerce sales, making it analogous to Amazon for its size here in the United States, although Amazon also operates in China, but is a much smaller player there than other domestic players. Unlike Amazon, Tmall has a similar system to the WeChat store pages discussed where companies can customize the user experience and offer other products to the user through their store page, in a similar sort of fashion to an actual mall. This suggests that it is more important that having engaging web design is more important for companies operating in China over companies operating in the West. In the West, the product might be listed on Amazon or wherever and web design in less important, but in China, providing an enticing and appropriate virtual experience seems
  • 16. to be of a much higher priority. Conclusion There are many aspect and challenges to consider when marketing in China. It is a marketplace that differs from typical Western markets for a variety of reasons, not only because of its location, culture, and consumer behaviors which is in contrast to that of Western markets, but a number of unique challenges and circumstances associated with the country: The country’s widespread and diverse demographics, its rapidly transforming and growing middle and upper-class consumer base, its oppressive government and its regulations, the same government’s disinterest in dealing with counterfeit, fraudulent products, and intellectual property theft, its unique set of holidays, and the countries interest in digital market experiences. With a growing middle and upper-class consumer base the Chinese market is a market with some great potential for international businesses, who should have an easier time competing for a consumer base that has more money, and who have a higher focus on quality and safety compared to previous generations. However, “discriminatory” practices against foreign companies by the Chinese government, such as forced technology transfers, along with the problem of intellectual property theft seem to be discouraging foreign investment in China, and foreign investment in China has been decreasing even though the Chinese market is a market with massive potential. While China has vowed to deal with these issues, many aren’t convinced. China seems to have done away with some of its more egregious practices, such as forced tech transfer, but it doesn’t seem to be fully willing to commit to giving up its total control. Companies should be prepared to not only adapt to China’s unique consumer behaviors, but to also deal with the challenges of regulation, poorly thought-out trademark laws, poorly thought-out laws in general, such as the law that has been used to prohibit foreign companies from displaying boned variations of the undead, a country that is willing to steal from and stifle foreign companies for the sake
  • 17. of what it perceives as Chinese interests, and a country rife with trademark and copyright infringers seeking to steal intellectual property and take away potential profit. References 5 Marketing Translation Mistakes. (2017, April 19). Retrieved April 20, 2018, from https://www.translatemedia.com/translation-blog/5-marketing- translation-mistakes/ 100-fastest-growing-companies. (n.d.). Retrieved April 21, 2018, from http://fortune.com/100-fastest-growing-companies Balding, C. (2017, August 30). China Realizes It Needs Foreign Companies. Bloomberg. Retrieved April 22, 2018, from bloomberg.com Buckley, Peter & Horn, Sierk. (2009). Japanese Multinational Enterprises in China: Successful Adaptation of Marketing Strategies. Long Range Planning - LONG RANGE PLANN. 42. 495-517. Chinese Consumer Behavior Overview. (2017, May 22). Retrieved April 18, 2018, from https://chozan.co/2017/04/18/chinese-consumer-behavior- overview/ Clark, G., & Hagan, S. (2018, March 22). What’s Intellectual Property and Does China Steal It? Bloomberg. Retrieved April 22, 2018, from bloomberg.com Custer, C. (2014, July 1). China doesn’t censor skeletons. Retrieved April 19, 2018, from https://www.techinasia.com/china-doesnt-censor-skeletons-the- truth-about-game-censorship-in-the-middle-kingdom eCommerce in China - the future is already here. (2017). Retrieved April 21, 2018, from https://www.pwccn.com/en/retail-and- consumer/publications/total-retail-2017-china/total-retail- survey-2017-china-cut.pdf
  • 18. Lam, A. (2014, November 12). 7 reasons why big international brands fail in China. Retrieved April 20, 2018, from http://www.marketing-interactive.com/7-reasons-why-big- international-brands-fail-in-china/ Plane, D., & Livingston, S. (2017, May 18). Procedures and strategies for anti-counterfeiting: China. Retrieved April 21, 2018, from http://www.worldtrademarkreview.com/Intelligence/Anti- counterfeiting/2017/Country-chapters/China Foreign Firms in China Say They Are Less Welcome Than in the Past. Fortune. (2017, January 18). Retrieved April 22, 2018, from fortune.com The Chinese Consumer in 2017: The Lifestyle Upgrade. (2017, October 13). Retrieved April 22, 2018, from https://www.credit- suisse.com/corporate/en/articles/news-and-expertise/the- chinese-consumer-in-2017-the-lifestyle-upgrade-201710.html Understanding Chinese Consumers. (2018, April 20). Retrieved April 18, 2018, from https://www.chinabusinessreview.com/understanding-chinese- consumers/ Understand the Chinese Consumer. (2014.). Retrieved April 18 2018, from http://go.channeladvisor.com/rs/485-FSD-368/images/us-ebook- understanding-chinese-consumer.pdf Wu, W. (2018, March 21). China vows to end forced tech transfers in manufacturing sector. South China Morning Post. Retrieved April 22, 2018, from scmp.com Wu, W. (2017, July 17). Foreign companies dissatisfied with China’s slow progress in opening up investment markets. South China Morning Post. Retrieved April 22, 2018, from scmp.com Why Mcommerce in China is the Future of ECommerce. (2018, February 24). Retrieved April 21, 2018, from https://www.marketingtochina.com/ mcommerce-china-future- ecommerce/ Appendices
  • 19. Appendix A Chinese Consumer Behavior Overview (2017) Appendix B Week Two - Guidance Hello Class! It was nice getting to know you through your introduction and your week one discussion question postings. Remember as you prepare your discussion posts, that to receive full credit you must include at least 2 citations of scholarly support to your answers for each discussion post (ie. Discussion One - 2 citations, Discussion Two - 2 citations). You can use your textbook as scholarly support, and remember to include a reference for the support cited. You should state your ideas and answers then follow them with support and a citation (author, year, page number). Also make sure your original post is at least 200 words long. Please let me know if you have any questions on this. In this second week of class we will be discussing the government’s role in energy and U.S. oil imports. You also have two assignments this week. The first assignment is numerical where a cover page and references are not needed, but you have to show your work and not just provide answers to receive full credit. The second assignment is conceptual which does require references and a reference page to receive full credit. Similar to week one I highly suggest you use the questions as headings to make sure all of the questions are addressed. On to our week two topics. For your first discussion you will be reviewing renewable and non-renewable sources of energy and the government’s role (if any) of providing efficiencies with these sources of energy. You will select one example of each source in your answer and discuss how the government may play a role in bringing about an efficient market for your selected sources of renewable and non-renewable energy. Tietenberg and Lewis
  • 20. (2012) give an example of government’s involvement with natural gas price controls (Price ceilings) and the issues that resulted from that, “The source of the problem can be traced directly to government controls over natural gas prices” (p. 142). The authors go into further details, “The ceilings would prevent prices from reaching their normal levels. Since price increases are the source of the incentive to conserve, the lower the prices would cause more of the resource to be used in earlier years” (p. 142). The authors then describe issues with supply and demand with the price ceiling set by the government (make sure to review chapter seven for these points). Your week two discussion is on U.S. oil imports and potential vulnerability. Tietenberg and Lewis (2012) provide an interesting debate on this in chapter seven. The authors described two political figures views on oil and how, “Over the long run, both candidates favored a transition to a greater reliance on hydrogen as an alternative fuel” (p. 154). You will discuss this topic along with OPEC’s (Organization of Petroleum Exporting Countries) role in the oil industry along with the cartel problem. Attached is an article that further discusses OPEC. Your first assignment again is numeric based and involves efficient allocation including dynamic efficient allocation. Tietenberg and Lewis (2012) explain dynamic efficiency in chapter five as, “Dynamic efficiency balances present and future uses of a deplete resource by maximizing the present value of the net benefits derived from its use” (p. 103). The numerical example referred to in the assignment is on page 103 of the text under the Two-Period Model section. Make sure to review the concepts and examples provided while answering this question. Also if you have any specific questions make sure to e-mail me before the assignment is due. Your second question is conceptually based and as stated in the beginning of the guidance, references (ideally two) and a reference page is required. Make sure to use the questions as headings to enhance the organization of your
  • 21. answer. Pay particular attention to chapter six as Tietenberg and Lewis (2012) review depletable resource allocation over time. Remember that your initial postings are due on Thurs. 4/9, and to respond to your fellow students' initial postings during the week. Your written assignments and responses are due on Monday 4/13. Keep up the good work! References Tietenberg, T., & Lewis, L. (2012). Environmental and natural resource economics (9th ed.). Upper Saddle River, NJ: Pearson Addison-Wesley. ISBN: 9780131392595 Week 2 Assignment - Cost-Depletable Resources PLEASE DO NOT SUBMIT A BID FOR THIS ASSIGNMENT IF YOU DO NOT HAVE EXPERIENCE WITH GRADUATE LEVEL WRITING TERMS AND CONCEPTS. ALL DIRECTIONS MUST BE FOLLOWED AND NO PLAGIARISM. MY SCHOOL USES SOFTWARE TO DETECT COPIED MATERIAL. Consider an increasingly marginal cost-depletable resource with no effective substitute. Describe how the user cost for this resource in the earlier time periods would depend on whether the demand curve for that resource was stable or shifting outward over time. Evaluate how the allocation of that resour ce over time would be affected. You must develop a two-page paper (not including title and reference pages) and be formatted according to APA style guidelines. You need to use two scholarly sources, in addition to the textbook, to support your assertions.
  • 22. Rubric For Research Paper Criterion DUE PRIOR TO 11:59PM CST ON SUNDAY MAY 3rd Unsatisfactory-C or < C 31.9 – 28.0 Points or less Points Satisfactory- B 35.9 –32.0 Points Exceptional – A 40.0 – 36.0 Points Preparing the submittal of the assignment. Did not meet Satisfactory criterion. Met the minimum requirements of the assignment plus addition effort– See below. Exceptional assignment over and above Satisfactory criterion.>12 pages of text Basic Requirements 1. Extent of coverage 1. Authority and accuracy of sources 1. Demonstrated research outside text.
  • 23. TURNITIN Turnitin % is greater than 25%-Plagiarism Did not meet Satisfactory requirements. Was not Submitted by turn-in deadline (Zero points if late). No objective reference sources were used. Sources cannot be verified. * Citation Submittal has 10 plus full text pages of text from top to bottom margin. Submittal Had: Title page Table of Contents Abstract Text 10 plus full text pages References (8) Appendix Zero points recorded for submittal Submittal percentage was less than 25%. If submittal is greater than 25% then submittal is classified as plagiarism and accordingly assigned zero points. If percentage is greater than 25% then student has not written the assignment in their own words.
  • 24. Submittal Had: Title page Table of Contents Abstract Text ( Submittal was less than 12 plus full pages from top to bottom margin but was at least 11 plus Full double spaced pages of text pages from top to bottom margin. Did not have bullet dot inserts nor numbered outline with the text. References (Minimum of 9) Appendix . In addition to meeting Satisfactory requirements, , research/materials include tables, charts and/or graphs with explanations. Text 12 plus Full text pages from top to bottom margin Extensive literature review with multiple types of sources; demonstrating a superior variety of media formats were used/cited. References (Minimum of 10) Appendix Appendix Appendix included table/charts that were individual created. No cut and paste appendix. Less points if submittal had less than 8 pages of text. NO APPENDIX
  • 25. Grading of Submittals lacking an Appendix will automatically begin at 28.0 points before other deductions are made for deficits not included within the submittal. Appendix had quantitative data In addition to meeting the requirements of Satisfactory, had a matrix to support and supplement the criterion of the assignment... Guidelines for Research paper The Research Paper will be on an International Management and Business topic that is very important to the culture, climate and operational needs within the International activity. An email will be sent to the student’s individual email with the topic’s name DURING THE SECOND WEEK OF THE COURSE. D2L WILL PROVIDE ME NOTIFICATION IF YOU RECEIVED IT. Below is your assigned topic: “Global Cultural Differences “ RESEARCH PAPER ON AN INTERNATIONAL MANAGEMENT AND BUSINESS TOPIC. (40% OF TOTAL COURSE GRADE) DUE DATE May 3rd, 2020. Below are some extractions from the objectives of the course as stated in the syllabus: The impact of the Covid-19 Virus has already and will have major impact on the ways that organizations, entities and countries interact with one another in the future. Today we are seeing and experiencing major process changes to local supply chain management and many of these processes will remain after we return with the control of the Virus and its expansion. Think about the process changes to grocery stores, fast food operations, many services activities, as well as banking, car buying in addition to the immediate changes to education.
  • 26. For the most part you are only seeing the immediate impact on education with the delivery of education as well as the support functions. Daily and continuing it is impacting the total infrastructure and processes which exist within the functions and activities of the education environment. So, as you begin finalizing your research for your topic and start drafting please keep in mind the recent impact and future implications that you should be incorporating into your Research paper topic. For instance: · an outlook on future growth and expansion. · background for international trade and investment activities and the international economic activity of nations and the balance of payments. · Development of a working knowledge of the international monetary system, financial markets, and trend toward economic integration around the world as well as achieving an understanding of the political and legal dimensions that affect international business. Each of these areas should be addressed within your Research paper Topic as the above will have an impact on your functional area or geographic area which is your Research paper topic. DURING THE SECOND WEEK OF THE COURSE. D2L WILL PROVIDE ME NOTIFICATION IF YOU RECEIVED IT. The paper must use APA style (AN EXAMPLE OF APA FORMATTING WILL BE PROVIDED) and have a minimum of 15 pages (full page text from top to bottom margin – these pages are in addition to the Cover page, Table of Contents page, Abstract page, Reference page and Appendix page) with a minimum of 10 references in the reference page. Please review the Research paper rubric which will be provided IN THE DOCUMENTS SHARING FILES. PAY EXTREME ATTENTION TO THE VALUE OF THE APPENDIX. The due date will be Sunday, May 3th. There will not be any exceptions or extensions for the due date and time because you will have
  • 27. had 13 weeks to work on it. Turnitin Tool The Research Paper will be reviewed by the research tool Turnitin. Instructor’s cut-off acceptance is less than 25%. If your submittal reflects a Turnitin percentage higher than 25%, then the assignment will be viewed and graded as a plagiarism submittal and assigned zero points. Accordingly, you should avoid any cut and paste and write your assignment in your own words. Avoid multiple words and continual words within a phrase, sentence, or paragraph from reference sources which will activate the Turnitin indicator of use of other authors or sources of copyrighted work. Also, avoid cut and paste from previous course assignments as this will also increase your Turnitin percentage. To review your work and the percentage calculation, post your submittal earlier than the cut-off date and time. It will reflect the percentage. Therefore, if you have a high percentage you can rework and replace sentences, etc. into your onwards. Then, post your assignment again prior to the cut-off date and time. Instructor will grade the last posted submittal prior to the cut-off day and time. Any submittal posted after the cut-off date and time will not be graded. If the late submittal is the only submittal then accordingly it will be assigned zero points. Thus, submit early instead of waiting until the “last minute.” Also, please do not email me as to why your percentage is greater than 25%. All you have to do is click on the “color” of Turnitin and it will list all the sources/reasons as to why your percentage is causing the over 25% and you can go back and correct your causes of the percentage. Please review the Graduate Student Handbook on the potential consequences of submitting a submittal that is