This document provides details for a feasibility report assignment submitted by Robert G. Zobec. It includes his student information, a declaration acknowledging the avoidance of plagiarism, and spaces for feedback. The feasibility report examines internationalizing Dorrien Estate, a winemaking facility in Australia, into the Chinese market. It analyzes the economic and sociocultural environment of China, discusses advantages and challenges of internationalization, and provides a SWOT analysis and recommendations for entering the Chinese wine market.
The paper discusses the role of regional public goods vs. global goods in influencing postcommunist transition in Central and Eastern Europe and former USSR with special attention given to three particular factors: (i) external anchoring of national reform process; (ii) international trade arrangements and (iii) international financial stability.
Authored by: Marek Dabrowski, Artur Radziwill
Published in 2007
This document summarizes a report on price convergence in the enlarged European Union. It finds that two main forces drive price developments: 1) increased competition lowers prices by reducing markups, and 2) the catching up process of lower-income countries leads to higher price levels and inflation as their economies develop. The report uses comparative price levels data to analyze price trends across EU countries and product categories. It identifies factors representing catching up and competition to empirically analyze their impacts on price convergence. It finds some evidence that EU enlargement has slightly accelerated price convergence, though the process remains gradual with half-lives of around 10 years.
The regulatory environment for businesses in Ukraine has been considered unfavorable and market unfriendly. Although various governments have made numerous efforts to improve it, many of these attempts have failed and increasing the quality of the regulatory environment in the country still remains on the agenda of the government. With this report we claim to review a set of measures undertaken in Ukraine after the Orange Revolution in the area of deregulation of business activity. The paper analyzes the effectiveness of actions undertaken in Ukraine in a general framework of successful regulatory policies implemented in other parts of the world. Based on this analysis we developed concrete public policy measures aiming to increase the quality of the regulatory environment in the country, which, in turn, should secure Ukraine’s further movement toward a real, functioning market economy.
Authored by: Ewa Balcerowicz, Oleg Ustenko
Published in 2006
This document is an edited volume titled "Stitches to Riches? Apparel Employment, Trade, and Economic Development in South Asia". It contains an overview chapter and several additional chapters authored by experts. The overview chapter frames the key questions addressed by the book, which are how much South Asian countries could increase their apparel exports by capturing market share from China, and how this could impact jobs and development in South Asia. It presents an analytical framework and finds that some South Asian countries like Bangladesh and Pakistan may capture a significant share of exports to key markets like the US, while Sri Lanka may do well in the EU market. It also notes opportunities but remaining challenges for South Asian countries to diversify products, end markets and meet buyers
This paper investigates an impact of the government policies aimed at the enterprise sector on competitiveness of this sector. The analysis was based on an example of the Polish manufacturing sector and the eight-year period from 1996 to 2003.
The general recommendation is that the competitiveness of the Polish manufacturing sector could be increased by relaxing fiscal burden, further privatization and restructuring of state owned companies. The state aid in a form of subsidies seems to harm both internal and external competitiveness rather than to support them.
Authored by: Ewa Balcerowicz, Maciej Sobolewski
Published in 2005
This document analyzes survey data from 220 Polish manufacturing firms from 1998-2003 to identify factors of employment growth and firm performance. It finds that firms which viewed themselves as more competitive, innovated more, and were privatized earlier performed better in terms of employment levels. However, econometric analysis showed that only foreign ownership had a statistically significant positive impact on revenues, productivity, profits and wages. The study provides insights into how different factors like competitiveness, technology, ownership and privatization affected employment growth and firm performance in Polish manufacturing during transition.
China's household paper industry saw steady growth in 2017 as the country's economy stabilized and improved,
while benefiting from increased population urbanization and consumption upgrading. On the other hand, under the
circumstance of strict environmental protection and high fluctuation of external pulp price, the speed of capacity
clearance is accelerating, thus driving the market share closer to the leading position. This Paper analyzes the assets
and business performance of three companies, Hengan International Group Co. Ltd, Vinda International Holdings
Limited and C&S Paper Co. Ltd, which are the first tier in Chinese household Paper industry. It is concluded that
Hengan, as the industry leader, has a large volume and is now in a stable position. Vinda also has diversified
development, but the situation is not objective. As a rising star, C&S focuses on living paper. Though it is small in
size, it is growing rapidly, and has already surpassed Vinda
This document provides a summary of a World Bank policy research working paper on global value chains. The paper aims to provide a framework and tools to measure countries' performance in global value chains and provide guidance on how countries can join, maintain participation in, and move up global value chains. Global value chains have become an important source of opportunities for trade, competitiveness, and development. The paper analyzes what global value chains are, why they are important, and provides context on how production has increasingly fragmented across borders through various organizational models like outsourcing and offshoring.
The paper discusses the role of regional public goods vs. global goods in influencing postcommunist transition in Central and Eastern Europe and former USSR with special attention given to three particular factors: (i) external anchoring of national reform process; (ii) international trade arrangements and (iii) international financial stability.
Authored by: Marek Dabrowski, Artur Radziwill
Published in 2007
This document summarizes a report on price convergence in the enlarged European Union. It finds that two main forces drive price developments: 1) increased competition lowers prices by reducing markups, and 2) the catching up process of lower-income countries leads to higher price levels and inflation as their economies develop. The report uses comparative price levels data to analyze price trends across EU countries and product categories. It identifies factors representing catching up and competition to empirically analyze their impacts on price convergence. It finds some evidence that EU enlargement has slightly accelerated price convergence, though the process remains gradual with half-lives of around 10 years.
The regulatory environment for businesses in Ukraine has been considered unfavorable and market unfriendly. Although various governments have made numerous efforts to improve it, many of these attempts have failed and increasing the quality of the regulatory environment in the country still remains on the agenda of the government. With this report we claim to review a set of measures undertaken in Ukraine after the Orange Revolution in the area of deregulation of business activity. The paper analyzes the effectiveness of actions undertaken in Ukraine in a general framework of successful regulatory policies implemented in other parts of the world. Based on this analysis we developed concrete public policy measures aiming to increase the quality of the regulatory environment in the country, which, in turn, should secure Ukraine’s further movement toward a real, functioning market economy.
Authored by: Ewa Balcerowicz, Oleg Ustenko
Published in 2006
This document is an edited volume titled "Stitches to Riches? Apparel Employment, Trade, and Economic Development in South Asia". It contains an overview chapter and several additional chapters authored by experts. The overview chapter frames the key questions addressed by the book, which are how much South Asian countries could increase their apparel exports by capturing market share from China, and how this could impact jobs and development in South Asia. It presents an analytical framework and finds that some South Asian countries like Bangladesh and Pakistan may capture a significant share of exports to key markets like the US, while Sri Lanka may do well in the EU market. It also notes opportunities but remaining challenges for South Asian countries to diversify products, end markets and meet buyers
This paper investigates an impact of the government policies aimed at the enterprise sector on competitiveness of this sector. The analysis was based on an example of the Polish manufacturing sector and the eight-year period from 1996 to 2003.
The general recommendation is that the competitiveness of the Polish manufacturing sector could be increased by relaxing fiscal burden, further privatization and restructuring of state owned companies. The state aid in a form of subsidies seems to harm both internal and external competitiveness rather than to support them.
Authored by: Ewa Balcerowicz, Maciej Sobolewski
Published in 2005
This document analyzes survey data from 220 Polish manufacturing firms from 1998-2003 to identify factors of employment growth and firm performance. It finds that firms which viewed themselves as more competitive, innovated more, and were privatized earlier performed better in terms of employment levels. However, econometric analysis showed that only foreign ownership had a statistically significant positive impact on revenues, productivity, profits and wages. The study provides insights into how different factors like competitiveness, technology, ownership and privatization affected employment growth and firm performance in Polish manufacturing during transition.
China's household paper industry saw steady growth in 2017 as the country's economy stabilized and improved,
while benefiting from increased population urbanization and consumption upgrading. On the other hand, under the
circumstance of strict environmental protection and high fluctuation of external pulp price, the speed of capacity
clearance is accelerating, thus driving the market share closer to the leading position. This Paper analyzes the assets
and business performance of three companies, Hengan International Group Co. Ltd, Vinda International Holdings
Limited and C&S Paper Co. Ltd, which are the first tier in Chinese household Paper industry. It is concluded that
Hengan, as the industry leader, has a large volume and is now in a stable position. Vinda also has diversified
development, but the situation is not objective. As a rising star, C&S focuses on living paper. Though it is small in
size, it is growing rapidly, and has already surpassed Vinda
This document provides a summary of a World Bank policy research working paper on global value chains. The paper aims to provide a framework and tools to measure countries' performance in global value chains and provide guidance on how countries can join, maintain participation in, and move up global value chains. Global value chains have become an important source of opportunities for trade, competitiveness, and development. The paper analyzes what global value chains are, why they are important, and provides context on how production has increasingly fragmented across borders through various organizational models like outsourcing and offshoring.
This thesis analyzes migration flows into OECD countries between 2000 and 2010. It examines both voluntary economic migration as well as forced migration in the form of asylum seekers. The author conducts a literature review on economic and non-economic push and pull factors influencing migration flows. An empirical analysis is then performed using migration data from 86 origin countries to 8 OECD destination countries. The analysis compares the determinants of voluntary versus forced migration and assesses how the factors differ across regional groups. The goal is to identify the key drivers of migration flows and similarities/differences between voluntary and forced migrants flowing to the OECD.
Supply chain globalisation and risk in sc.docxMutaz Ayed
This document provides an overview of globalization and risks in supply chain management, using Apple Inc. as a case study. It begins with an introduction and outlines the project's aim and structure. The literature review then discusses concepts of supply chain management, globalization, global organizations and products, and strategies in global supply chains. It also examines global supply chain risks. Next, the document analyzes Apple as a case study, covering its background, global supply chain strategy, outsourcing, dedicated factories, centralized inventories, and risks. It concludes with lessons learned.
This document provides an overview and analysis of Cambodia's garment industry and its impact on poverty reduction. It discusses the growth of garment production and exports. It examines the effects on employment, wages, economic growth, and human development. The garment industry has been very important for Cambodia's economy, accounting for over 75% of exports by 2005 and contributing to growth, but benefits have been unevenly distributed and working conditions are a concern.
Which way to choose - European Prosperity or Trade StabilityIBStudy
How students saw the integration opportunities for Ukraine. Ukraine's European integration vs. integration to customs union leaded by Russia. Findings of master`s level students at International Business English Language Program, National Technical University "Kharkiv Polytechnic Institute" 2013.
THE WINE DISTRIBUTION SYSTEM IN THE DOMINICAN REPUBLIC: A QUALITATIVE APPROACHijmvsc
This research presents a case study of the wine distribution system of the Dominican Republic (DR). It focuses on the emerging wine market which is not a wine producing region, however represents a large and growing market for export of wine. Data were collected though in-depth interviews with major
representatives of the DR wine distribution system–importers, retailers, managers of restaurants, allinclusive resorts, and hotels. In addition, field observations were used as a mechanism of qualitative data collection. The findings show that almost all available wine in the DR is controlled by importers.
Importers negotiate promotional costs, slot fees, and promotional budgets with the producers and provide
credit to retailers. The Dominican Republic wine market operates in a highly competitive environment;
Spain, Chile, Italy, and the United States are primary competitors on this market. Retail represents the
biggest channel for sales of imported wines.
Internationalization of the English brand Tatcher to ItalyDanilo Valentino
This document discusses internationalizing the English cider brand Thatchers Gold to Italy. It begins by providing background on Thatchers and the growing global cider market. The objectives of launching in Italy are to start selling within 3-5 months, achieve product awareness within a year, and gain high awareness and share the market with competitors within 2-3 years. Italy is chosen due to being in the EU, proximity to the UK, and its growing economy. Research shows the Italian cider market is dominated by Strongbow Gold but is growing rapidly among young consumers. Thatchers Gold aims to compete by differentiating itself from Strongbow.
This study seeks to determine the extent to which countries of the former Soviet Union are "infected" by the Dutch Disease. We take a detailed look at the functioning of the transmission mechanism of the Dutch Disease, i.e. the chains that run from commodity prices to real output in manufacturing. We complement this with two econometric exercises. First, we estimate nominal and real exchange rate models to see whether commodity prices are correlated with the exchange rate. Second, we run growth equations to analyse the possible effects of commodity prices and the dependency of economic growth on natural resources.
Authored by: Balazs Egert
Published in 2009
This paper analyses the effect of the EU enlargement process on income convergence among regions in the EU and in the Eastern neighbourhood of the EU. The data used is NUTS II regions in the EU and Oblasts' of Russia over the period 1996-2004. The estimation techniques used take into account both regional and spatial heterogeneity. The main findings are that the regional income differences are reduced within EU15. The income convergence within the EU is mainly driven by reductions in the differences across countries rather than by a reduction in regional differences within countries. When differences in initial conditions in the regions are controlled for by fixed regional effects there are strong evidences of convergence among regions in all studied country groups.
Authored by: Fredrik Wilhelmsson
Published in 2009
This document summarizes a study on changes in competitiveness among Polish manufacturing industries from 1996-2003 prior to Poland joining the EU. It finds that competitiveness varied significantly across industries. Industries were classified into four clusters: double winners that improved competitiveness on both domestic and EU markets, export-led industries that gained EU market share but lost domestic share, export-oriented industries that increased share on both markets, and losers that lost share on both markets. Larger initial productivity differences across industries led to greater divergence in competitiveness changes over time. Transition to a market economy and trade liberalization improved competitiveness for highly productive industries more than less productive ones.
There is a solid foundation upon which to argue that the labour market is the most important market of modern economies (see, for example, Elliott 1991). The reason for this arises
from the well-known fact that, by a wide margin, most individuals derive their current income flow from selling their labour services. This applies to the Finnish labour markets,
which have gained growing interest during the 1990s.
The prominent reason for the interest has been the empirical feature that the unemployment rate soared during the so-called great slump of the early 1990s. Since then, according to a number of commentators on public affairs, unemployment has been the most important economic and social problem
in Finland. In this respect, the situation is nowadays much the same across the whole of the European labour markets.
As a consequence of this development of the 1990s, the
issues associated with the Finnish labour markets constitute a topical research theme.
Trade Policy Implications of Global Value Chains Dr Lendy Spires
The document analyzes the implications of global value chains for trade policy through four case studies. The first case study estimates that over 30% of total collected tariffs were paid on services value-added embedded in traded goods. It finds that services suppliers bear a substantive share of tariff costs across sectors and countries. The second case study analyzes Canada's unilateral removal of tariffs on manufacturing inputs, finding it significantly reduced effective protection and is expected to boost productivity through improved access to foreign intermediates. The third case study examines the Information Technology Agreement, finding parties have higher participation in IT global value chains but cumulative tariffs remain for industries not covered. The fourth case study finds regional trade agreements generally match major production networks, though coverage could
This document provides an abstract for a study examining the determinants of export survival among Kenyan exporters. The study will use a discrete-time model and firm-level export data from the Exporter Dynamics Database to analyze how factors like market distinctions, employment types, production chains, and trade agreements influence the survival of Kenyan exports. Previous literature has found that export survival rates are generally low, especially for developing countries, and this study aims to contribute new insights about export survival specific to Kenyan firms.
Comparative analysis of the impact of Syrian refugees on Jordan and GermanyWa'ed Alshoubaki
This is a presentation entitled Comparative analysis of the impact of Syrian refugees on Jordan and Germany and was presented at Collge of public Service, Tennessee State University part of public service brown bag series.
This paper employs a standard Tobin-Markowitz framework to analyse the determinants of capital flows into the CIS countries. Using data from 1996-2006, we find that the Russian financial crisis of 1998 has had a profound impact on capital flows into the CIS (both directly and indirectly). Firstly, it introduced a structural shift in the investors' behaviour by shifting the focus from the external factors to the internal ones, e.g. domestic interest and GDP growth rates. Secondly, it also drastically changed the impact of a number of explanatory variables on capital flows into the CIS. Political risk was found to be the second most important determinant of capital flows into the CIS. Additionally, we report some strong evidence of co-movement between portfolio flows into the CIS and CEEC, coupled with strong complementarity between global stock market activity and portfolio inflows into the CIS. Interestingly, external factors tend to be of a higher significance than internal factors for the largest members (Russia, Ukraine and Kazakhstan) of the CIS; whereas domestic variables tend to have a greater impact on the capital flows into the smaller CIS countries.
Authored by: Oleksandr Lozovyi
Published in 2007
Trend #1 discusses the growing polarization between urban and rural areas in Denmark over the past 10 years. Housing costs and other resources like higher education, research investment, and employment have increasingly concentrated in large cities like Copenhagen. This urbanization of resources is driven by factors like the knowledge economy, globalization, and falling interest rates that have boosted housing prices. Going forward, the report predicts this trend will further strain housing and infrastructure in cities, while widening the gap in values and consumer behaviors between urban and rural populations.
This document summarizes a report on China's printing industry from 2010-2012. It provides an overview of the industry, key market segments, major players, equipment and materials markets. The printing industry in China has grown significantly, becoming the 3rd largest in the world by 2010. However, growth was uneven across sub-industries. The report analyzes trends in various printing areas and profiles major Chinese printing companies.
This document discusses Kazakhstan's entry into the Customs Union with Belarus and Russia in 2010. It analyzes the effects of adopting a common external tariff on Kazakhstan's import structure and volumes. The empirical analysis finds that while overall imports were not significantly affected, the tariff changes likely created some trade diversion. Imports from China saw a significant negative impact, while imports from within the Customs Union saw a small but significant positive impact. However, there is little evidence of trade diversion from higher-value exporters like EU countries. The benefits to Kazakhstan from the new tariff policy alone appear to be limited based on these short-term results.
Mauritius - Export made clear (by Mexa)AFRIKASOURCES
« L’avenir de l’industrie d’exportation dépendra de notre efficacité dans l’identification de marchés alternatifs pour nos biens et services », écrit la Mauritius Export Association (MEXA) dans un document intitulé « Export Made Clear » et dans lequel l’association dissèque la performance du secteur pendant le premier trimestre 2013.
Timea Grego ECON 662 Grad Research Paper FinalTimea Grego
This document is a graduate research paper that examines China's foreign direct investment policy and whether it has contributed to China becoming a pollution haven. The paper begins by introducing the topic and outlines its aims to explore the impact of China's FDI policy on the global environment. It then discusses the pollution haven hypothesis and provides examples of studies that have analyzed the relationship between FDI, environmental degradation and China. However, the paper notes that most studies have focused on lax environmental regulations rather than cheap energy resources. The rest of the paper will analyze China's economic reforms and links to trade and FDI, examine whether China is a pollution haven by looking at affected industries and the role of FDI, and consider policy recommendations.
This document provides an overview of Chapter 1 from a textbook on international business. It discusses the forces driving globalization, including advances in technology, liberalized trade policies, and increased cooperation between countries. It also examines why companies engage in international business to expand sales, acquire resources, and minimize risk. While globalization offers economic benefits, it also faces criticisms such as threats to national sovereignty and growing income inequality. The chapter concludes by noting how international business differs from domestic business due to varying political, legal, cultural, economic and competitive environments around the world.
This thesis analyzes migration flows into OECD countries between 2000 and 2010. It examines both voluntary economic migration as well as forced migration in the form of asylum seekers. The author conducts a literature review on economic and non-economic push and pull factors influencing migration flows. An empirical analysis is then performed using migration data from 86 origin countries to 8 OECD destination countries. The analysis compares the determinants of voluntary versus forced migration and assesses how the factors differ across regional groups. The goal is to identify the key drivers of migration flows and similarities/differences between voluntary and forced migrants flowing to the OECD.
Supply chain globalisation and risk in sc.docxMutaz Ayed
This document provides an overview of globalization and risks in supply chain management, using Apple Inc. as a case study. It begins with an introduction and outlines the project's aim and structure. The literature review then discusses concepts of supply chain management, globalization, global organizations and products, and strategies in global supply chains. It also examines global supply chain risks. Next, the document analyzes Apple as a case study, covering its background, global supply chain strategy, outsourcing, dedicated factories, centralized inventories, and risks. It concludes with lessons learned.
This document provides an overview and analysis of Cambodia's garment industry and its impact on poverty reduction. It discusses the growth of garment production and exports. It examines the effects on employment, wages, economic growth, and human development. The garment industry has been very important for Cambodia's economy, accounting for over 75% of exports by 2005 and contributing to growth, but benefits have been unevenly distributed and working conditions are a concern.
Which way to choose - European Prosperity or Trade StabilityIBStudy
How students saw the integration opportunities for Ukraine. Ukraine's European integration vs. integration to customs union leaded by Russia. Findings of master`s level students at International Business English Language Program, National Technical University "Kharkiv Polytechnic Institute" 2013.
THE WINE DISTRIBUTION SYSTEM IN THE DOMINICAN REPUBLIC: A QUALITATIVE APPROACHijmvsc
This research presents a case study of the wine distribution system of the Dominican Republic (DR). It focuses on the emerging wine market which is not a wine producing region, however represents a large and growing market for export of wine. Data were collected though in-depth interviews with major
representatives of the DR wine distribution system–importers, retailers, managers of restaurants, allinclusive resorts, and hotels. In addition, field observations were used as a mechanism of qualitative data collection. The findings show that almost all available wine in the DR is controlled by importers.
Importers negotiate promotional costs, slot fees, and promotional budgets with the producers and provide
credit to retailers. The Dominican Republic wine market operates in a highly competitive environment;
Spain, Chile, Italy, and the United States are primary competitors on this market. Retail represents the
biggest channel for sales of imported wines.
Internationalization of the English brand Tatcher to ItalyDanilo Valentino
This document discusses internationalizing the English cider brand Thatchers Gold to Italy. It begins by providing background on Thatchers and the growing global cider market. The objectives of launching in Italy are to start selling within 3-5 months, achieve product awareness within a year, and gain high awareness and share the market with competitors within 2-3 years. Italy is chosen due to being in the EU, proximity to the UK, and its growing economy. Research shows the Italian cider market is dominated by Strongbow Gold but is growing rapidly among young consumers. Thatchers Gold aims to compete by differentiating itself from Strongbow.
This study seeks to determine the extent to which countries of the former Soviet Union are "infected" by the Dutch Disease. We take a detailed look at the functioning of the transmission mechanism of the Dutch Disease, i.e. the chains that run from commodity prices to real output in manufacturing. We complement this with two econometric exercises. First, we estimate nominal and real exchange rate models to see whether commodity prices are correlated with the exchange rate. Second, we run growth equations to analyse the possible effects of commodity prices and the dependency of economic growth on natural resources.
Authored by: Balazs Egert
Published in 2009
This paper analyses the effect of the EU enlargement process on income convergence among regions in the EU and in the Eastern neighbourhood of the EU. The data used is NUTS II regions in the EU and Oblasts' of Russia over the period 1996-2004. The estimation techniques used take into account both regional and spatial heterogeneity. The main findings are that the regional income differences are reduced within EU15. The income convergence within the EU is mainly driven by reductions in the differences across countries rather than by a reduction in regional differences within countries. When differences in initial conditions in the regions are controlled for by fixed regional effects there are strong evidences of convergence among regions in all studied country groups.
Authored by: Fredrik Wilhelmsson
Published in 2009
This document summarizes a study on changes in competitiveness among Polish manufacturing industries from 1996-2003 prior to Poland joining the EU. It finds that competitiveness varied significantly across industries. Industries were classified into four clusters: double winners that improved competitiveness on both domestic and EU markets, export-led industries that gained EU market share but lost domestic share, export-oriented industries that increased share on both markets, and losers that lost share on both markets. Larger initial productivity differences across industries led to greater divergence in competitiveness changes over time. Transition to a market economy and trade liberalization improved competitiveness for highly productive industries more than less productive ones.
There is a solid foundation upon which to argue that the labour market is the most important market of modern economies (see, for example, Elliott 1991). The reason for this arises
from the well-known fact that, by a wide margin, most individuals derive their current income flow from selling their labour services. This applies to the Finnish labour markets,
which have gained growing interest during the 1990s.
The prominent reason for the interest has been the empirical feature that the unemployment rate soared during the so-called great slump of the early 1990s. Since then, according to a number of commentators on public affairs, unemployment has been the most important economic and social problem
in Finland. In this respect, the situation is nowadays much the same across the whole of the European labour markets.
As a consequence of this development of the 1990s, the
issues associated with the Finnish labour markets constitute a topical research theme.
Trade Policy Implications of Global Value Chains Dr Lendy Spires
The document analyzes the implications of global value chains for trade policy through four case studies. The first case study estimates that over 30% of total collected tariffs were paid on services value-added embedded in traded goods. It finds that services suppliers bear a substantive share of tariff costs across sectors and countries. The second case study analyzes Canada's unilateral removal of tariffs on manufacturing inputs, finding it significantly reduced effective protection and is expected to boost productivity through improved access to foreign intermediates. The third case study examines the Information Technology Agreement, finding parties have higher participation in IT global value chains but cumulative tariffs remain for industries not covered. The fourth case study finds regional trade agreements generally match major production networks, though coverage could
This document provides an abstract for a study examining the determinants of export survival among Kenyan exporters. The study will use a discrete-time model and firm-level export data from the Exporter Dynamics Database to analyze how factors like market distinctions, employment types, production chains, and trade agreements influence the survival of Kenyan exports. Previous literature has found that export survival rates are generally low, especially for developing countries, and this study aims to contribute new insights about export survival specific to Kenyan firms.
Comparative analysis of the impact of Syrian refugees on Jordan and GermanyWa'ed Alshoubaki
This is a presentation entitled Comparative analysis of the impact of Syrian refugees on Jordan and Germany and was presented at Collge of public Service, Tennessee State University part of public service brown bag series.
This paper employs a standard Tobin-Markowitz framework to analyse the determinants of capital flows into the CIS countries. Using data from 1996-2006, we find that the Russian financial crisis of 1998 has had a profound impact on capital flows into the CIS (both directly and indirectly). Firstly, it introduced a structural shift in the investors' behaviour by shifting the focus from the external factors to the internal ones, e.g. domestic interest and GDP growth rates. Secondly, it also drastically changed the impact of a number of explanatory variables on capital flows into the CIS. Political risk was found to be the second most important determinant of capital flows into the CIS. Additionally, we report some strong evidence of co-movement between portfolio flows into the CIS and CEEC, coupled with strong complementarity between global stock market activity and portfolio inflows into the CIS. Interestingly, external factors tend to be of a higher significance than internal factors for the largest members (Russia, Ukraine and Kazakhstan) of the CIS; whereas domestic variables tend to have a greater impact on the capital flows into the smaller CIS countries.
Authored by: Oleksandr Lozovyi
Published in 2007
Trend #1 discusses the growing polarization between urban and rural areas in Denmark over the past 10 years. Housing costs and other resources like higher education, research investment, and employment have increasingly concentrated in large cities like Copenhagen. This urbanization of resources is driven by factors like the knowledge economy, globalization, and falling interest rates that have boosted housing prices. Going forward, the report predicts this trend will further strain housing and infrastructure in cities, while widening the gap in values and consumer behaviors between urban and rural populations.
This document summarizes a report on China's printing industry from 2010-2012. It provides an overview of the industry, key market segments, major players, equipment and materials markets. The printing industry in China has grown significantly, becoming the 3rd largest in the world by 2010. However, growth was uneven across sub-industries. The report analyzes trends in various printing areas and profiles major Chinese printing companies.
This document discusses Kazakhstan's entry into the Customs Union with Belarus and Russia in 2010. It analyzes the effects of adopting a common external tariff on Kazakhstan's import structure and volumes. The empirical analysis finds that while overall imports were not significantly affected, the tariff changes likely created some trade diversion. Imports from China saw a significant negative impact, while imports from within the Customs Union saw a small but significant positive impact. However, there is little evidence of trade diversion from higher-value exporters like EU countries. The benefits to Kazakhstan from the new tariff policy alone appear to be limited based on these short-term results.
Mauritius - Export made clear (by Mexa)AFRIKASOURCES
« L’avenir de l’industrie d’exportation dépendra de notre efficacité dans l’identification de marchés alternatifs pour nos biens et services », écrit la Mauritius Export Association (MEXA) dans un document intitulé « Export Made Clear » et dans lequel l’association dissèque la performance du secteur pendant le premier trimestre 2013.
Timea Grego ECON 662 Grad Research Paper FinalTimea Grego
This document is a graduate research paper that examines China's foreign direct investment policy and whether it has contributed to China becoming a pollution haven. The paper begins by introducing the topic and outlines its aims to explore the impact of China's FDI policy on the global environment. It then discusses the pollution haven hypothesis and provides examples of studies that have analyzed the relationship between FDI, environmental degradation and China. However, the paper notes that most studies have focused on lax environmental regulations rather than cheap energy resources. The rest of the paper will analyze China's economic reforms and links to trade and FDI, examine whether China is a pollution haven by looking at affected industries and the role of FDI, and consider policy recommendations.
This document provides an overview of Chapter 1 from a textbook on international business. It discusses the forces driving globalization, including advances in technology, liberalized trade policies, and increased cooperation between countries. It also examines why companies engage in international business to expand sales, acquire resources, and minimize risk. While globalization offers economic benefits, it also faces criticisms such as threats to national sovereignty and growing income inequality. The chapter concludes by noting how international business differs from domestic business due to varying political, legal, cultural, economic and competitive environments around the world.
The document discusses the importance and nature of international entrepreneurship. It notes that globalization has reduced distinctions between foreign and domestic markets. International entrepreneurship involves conducting business across national boundaries through activities like exporting, licensing, or opening foreign sales offices. Compared to domestic business, international business faces different economic, political, legal and technological environments across countries at varying stages of development. The document outlines some key factors international entrepreneurs must consider, such as currency differences, infrastructure, legal systems, and language barriers. It also lists common motivations for businesses to pursue global markets like profits, competitive pressures, and unique opportunities. Finally, it describes important traits of successful international entrepreneurs like embracing change, having a strong drive to achieve, establishing clear vision,
This document provides an overview and introduction to international business. It defines international business as transactions between parties from different countries, including sourcing, manufacturing, selling, and developing. It notes that conducting international business presents unique risks, challenges and opportunities. The key objectives of studying international business are to understand the global business environment, select international business modes, analyze different cultures, research global markets, understand how policy shapes business, and comprehend the EU's role in markets.
This document analyzes the internationalization paths of Chinese enterprises based on the Uppsala model, which divides internationalization into three stages: preparation, steady advancement, and global expansion. It examines the paths taken by Geely, Midea Group, and Shuanghui through case studies. In the preparation stage, companies face challenges like lack of market information and experience, which they overcome through cautious strategies. In the steady advancement stage, risks increase from issues like regulations and culture, which companies mitigate through cooperation. In the global expansion stage, challenges involve brand image and financing, which companies address through mergers and acquisments as well as government support. The document concludes internationalization requires both enterprise competitiveness and linking strategy to local interests
The document summarizes the topics of an international business presentation, including:
1) The importance of international business and how it benefits materials sourcing, global opportunities, and political relations.
2) How culture influences global business through consumer behavior, communication styles, and business practices.
3) How governments can help or hinder international business through various policies and political risks.
Learning Activity 1In the readings for this week we learned about .docxjesseniasaddler
Learning Activity 1
In the readings for this week we learned about the Demand Model that was introduced by Professor Michael Porter. According to the model, the ability of the firms in an industry whose origin is in a particular company to be successful in the international arena is shaped by four factors (1) their home country’s demand conditions, (1) their home country’s factor conditions, (3) related and supporting industries within their home country, and (4) strategy, structure, and rivalry among domestic competitors.
Learning Activity
Respond to the following questions:
(1)
Which of the four elements of the diamond model do you believe has the strongest influence on a firm’s fate when it competes in international markets?
(2)
Provide an example of a company that demonstrates this ability to compete internationally and how this company demonstrates this ability.
(3)
Which of the three types of International Strategies that were discussed in our readings does this company demonstrate? Provide a justification for your strategy choice.
Learning Activity 2
Multinational Organizations
1. International firms or multinational corporations are organizations that conduct business operations across national borders.
2. The strategic-management process is conceptually the same for multinational firms as for purely domestic firms, although the process is more complex for international firms due to more variables and relationships.
3. More time and effort are required to identify and evaluate external trends and events in multinational organizations than in domestic corporations.
4. Multinational corporations face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers.
5. Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations, participate in international trade fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish the risk of doing business in new markets.
The Global Challenge
1. Few companies can afford to ignore the presence of international competition. Firms that seem insulated and comfortable today may be vulnerable tomorrow.
a. How to gain and maintain exports to other nations
b. How to defend domestic markets against imported goods.
2. America's economy is becoming much less American, as a world economy and monetary system are emerging. More and more countries around the world are welcoming foreign investment and capital. As a result, labor markets have steadily become more international.
3. Many countries became more protectionist during the recent global economic recession. Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor.
This thesis examines the risks that firms face when expanding internationally. It identifies cross-cultural risk, commercial risk, and country risk as the three main risks based on a review of literature. Cross-cultural risk relates to differences in language, customs and values between countries. Commercial risk stems from poor strategic decisions about market entry. Country risk involves challenges from differences in political and legal systems across nations. The thesis will analyze each risk in depth and provide the example of Walmart's failure in Germany to illustrate how poorly managing these risks can lead to international business failures. The goal is to help companies learn from others' mistakes to successfully establish abroad.
Whatís an Emerging Market Economy? Essay
business economics Essay
The Role of Business in the Economy
Inflation and the Economy Essay
Germany and its Economy Essays
The Global Economy Essay
Economy Essays
Macroeconomic Outlook of U.S. Economy Essay
Economic Growth Essay
Essay about U.S. Economy
Essay On The Economy
Free Market Economy Essay
Economic Systems Essay
State of Economy Essay
Impact Of Globalization On The Economy Essay
U.K. Economy Essay
Macroeconomics Essay
What is Economics? Essay
The document discusses several key topics related to globalization and international business:
1. It defines globalization as the integration of world economies through reduced barriers to trade, capital, technology, and labor movement. This includes the globalization of markets and production.
2. Factors driving increased globalization include advances in technology, trade liberalization, economic reforms, growing consumerism, and global competition.
3. International business refers to commercial transactions between two or more countries, including exports, imports, and transportation. Firms engage in international business to access new markets and take advantage of factors like lower costs and skilled labor in other countries.
4. Barriers to international trade include cultural differences, political risks
Learning Activity 1In the readings for this week we learned abou.docxSHIVA101531
Learning Activity 1
In the readings for this week we learned about the Demand Model that was introduced by Professor Michael Porter. According to the model, the ability of the firms in an industry whose origin is in a particular company to be successful in the international arena is shaped by four factors (1) their home country’s demand conditions, (1) their home country’s factor conditions, (3) related and supporting industries within their home country, and (4) strategy, structure, and rivalry among domestic competitors.
Learning Activity
Respond to the following questions:
(1) Which of the four elements of the diamond model do you believe has the strongest influence on a firm’s fate when it competes in international markets?
(2) Provide an example of a company that demonstrates this ability to compete internationally and how this company demonstrates this ability.
(3) Which of the three types of International Strategies that were discussed in our readings does this company demonstrate? Provide a justification for your strategy choice.
Learning Activity 2
Multinational Organizations
1. International firms or multinational corporations are organizations that conduct business operations across national borders.
2. The strategic-management process is conceptually the same for multinational firms as for purely domestic firms, although the process is more complex for international firms due to more variables and relationships.
3. More time and effort are required to identify and evaluate external trends and events in multinational organizations than in domestic corporations.
4. Multinational corporations face unique and diverse risks, such as expropriation of assets, currency losses through exchange rate fluctuations, unfavorable foreign court interpretations of contracts and agreements, social/political disturbances, import/export restrictions, tariffs, and trade barriers.
5. Before entering international markets, firms should scan relevant journals and patent reports, seek the advice of academic and research organizations, participate in international trade fairs, form partnerships, and conduct extensive research to broaden their contacts and diminish the risk of doing business in new markets.
The Global Challenge
1. Few companies can afford to ignore the presence of international competition. Firms that seem insulated and comfortable today may be vulnerable tomorrow.
a. How to gain and maintain exports to other nations
b. How to defend domestic markets against imported goods.
2. America's economy is becoming much less American, as a world economy and monetary system are emerging. More and more countries around the world are welcoming foreign investment and capital. As a result, labor markets have steadily become more international.
3. Many countries became more protectionist during the recent global economic recession. Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor th ...
Dissertation International Marketing Management SampleDissertationFirst
Dissertation International Marketing Management Sample:
'Textile Component' is a UK based company and successfully operating its transactions from many years. The company produces and sell components and parts to other textile manufacturing industry. The major products of the firms are buttons, zips and fasteners for the clothing as well as garments. As the organization has achieved success and because of the recent trends in globalization, textile component decided to expand their market and increase their global reach. Internationalization of business is not considered as an easy task. Many challenges and hurdles come across in this context. Organization need to adopt many practices and strategies to perform better and effectively in the international market (Johnson and Turner, 2009).
The main purpose of this report is to prepare an entry plan for international markets in regards with the textile components. The report will also investigate various factors that influence the entry mode of company in to the global market along with the potential barriers that might hinders the expansion of the firm (Globalization - Economic Dimension, 2006). Various marketing strategies in order to enter in the international market are also being explored by the researcher.
In the conclusion part of the report various recommendations for adequate marketing strategy for textile components is also mentioned which provide an aid to the firm to expand their business in the global market.
International business involves focusing global resources and opportunities to produce, buy, sell, or exchange goods and services worldwide. There are five stages of internationalization for companies: domestic, international, multinational, global, and transnational. As companies progress through these stages, their approach shifts from ethnocentric to polycentric to geocentric. International business environments are complex with many political, economic, socio-cultural, technological, legal, and natural factors that companies must consider when operating globally. Globalization has increased integration between world economies through liberalized trade, investment, and technological changes.
This document outlines the syllabus for an International Business course. It includes 5 units that will be covered: International Business Environment, Foreign Trade, Foreign Exchange Market, International Financial Institutions, and India's Foreign Trade. It provides learning objectives and outcomes, lists recommended books and online resources, and provides an overview of the content that will be covered in each unit.
Globalization theories document discusses pros and cons of globalization and different theories around it. There are pro-globalization theories that argue it increases economic growth and standards of living through increased trade and specialization. However, anti-globalization theories argue it benefits large multinational corporations more than small businesses and workers in developing nations through wage manipulation and monopolistic practices. For firms to benefit from expanding globally, they need advanced IT, thorough market research to understand foreign cultures, and to employ a diverse workforce to understand multiple markets.
This document discusses international trade. It provides statistics showing that global trade grew 10.5% in 2017 to $34 trillion, with machines, fuels, automobiles and plastics making up the largest traded commodities. International trade brings both advantages and disadvantages. The advantages include increased revenues, longer product lifespans, better risk management, and benefiting from currency exchange. The disadvantages are impediments to local industries, domestic unemployment, economic dependence, political risks, proprietary information theft, misuse of natural resources, and danger to international peace. The conclusion states that international trade can help Vietnam specialize and exploit resources to maximize production and benefits.
International business assignment on Globalization of Toyota (For BBA/B.com S...Yamini Kahaliya
in this project report the focus is on globalization impact on Toyota.
the topics covered in this assignment are :-
1. Meaning of globalization
2. Positive & Negative impact of Globalisation
3. case study on Toyota (impact of Globalisation)
this assignment beneficial for BBA/B.Com students.
ASSIGNMENT ON IMPACT OF GLOBALISATION ON TOYOTAYamini Kahaliya
this is my college assignment on impact of globalisation on Toyota. this is beneficial for BBA/B.com/MBA/M.com students.
it covers following topics -
Meaning of Globalization
Positive impact of Globalization
Negative impact of Globalization
Case study on Toyota
Introduction
Impact of globalization on Toyota
Production graph of Toyota
Conclusion
Bibliography
Similar to Chinese Wine Market Feasability Report (20)
1. DETAILS OF ASSIGNMENT
STUDENT NAME Robert G Zobec ID NUMBER 9529950
EMAIL ADDRESS PHONE
CONTACT
UNIT CODE * NAME MAR305
ASSESSMENTTITLE Feasibility Report
TUTOR’S NAME: DATE OF SUBMISSION: 21-03-2013
.
DECLARATION
I declare that ( the first four boxes mustbe completed for the assignmentto be accepted):
This assignment does notcontain any material that has previously been submitted for assessmentat this or any
other university.
This is an original piece ofwork and no part has been completed by any other studentthan signed below.
I have read and understood the avoiding plagiarism guidelines at
http://www.swinburne.edu.au/ltas/plagiarism/students.htm and no partof this work has been copied or paraphrased
from any other source exceptwhere this has been clearly acknowledged in the body ofthe assignmentand
included in the reference list.
I have retained a copy ofthis assignmentin the eventof it becoming lostor damaged.
(optional) I agree to a copy ofthe assignmentbeing retained as an exemplar for future students (subjectto
identifying details being removed).
Student
acknowledgement ( by
typing your name you
agree to the above):
RobertZobec
Date:
DETAILS OF FEEDBACK
3. iii
ExecutiveSummary
This report discusses the feasibility of an organisation entering and trading in
a foreign market. The report gives a background view of the Dorrien Estate
wine-making facility and its product, wine. The report highlights that the
organisation is seeking to internationalise its operations and market its
product to one of the world’s fastest growing foreign markets, China.
The report discusses the advantages and disadvantages of an organisation
internationalising a product in a foreign market. Main advantages include
larger trade markets and selling opportunities and the benefits of risk
distribution and greater economies. Uncontrollable factors such as foreign
economies, political climates, technological and legal factors may be
disadvantageous for a company trading in a foreign market, along with the
challenges presented by socio-cultural factors, such as language and cultural
barriers, in conjunction with an organisations’ Self-Reference Criterion and
Ethnocentrism.
The state of the Chinese economy is discussed, highlighting that the nation is
the second largest economy in the world and plays an influential role in the
global economy. The Gross Domestic Product of China accounts for 11.7% of
the world economy. Coupled with a surplus Current Account of USD$65.8
Billion, the national wealth has given rise to high levels of disposable income
for citizens, leading to increased demand for foreign products, and in
particular, Australian wine.
Socio-cultural factors are analysed and show that the proliferation of
consumer wealth has seen a demand from China for high-quality wine from
Australia. Cultural attitudes reflect that wine is seen as sophisticated and
represents images of luxury and decadence, increasing consumption.
The report delivers a SWOT analysis covering key issues and concludes with
a summary of all points raised, along with recommending that the
internationalisation of Dorrien Estate is feasible if all economic and socio-
cultural factors are analysed, addressed, understood and taken into
consideration before marketing to the Chinese wine market.
4. iv
Table of Contents
ExecutiveSummary…………………………………………………..ii
1: Introduction .................................................................................1
2: Organisation and Product Background...................................1
3: Internationalisation Discussion................................................2
3.1: Advantage and Benefits ......................................................2
3.2: Disadvantages and Challenges..........................................3
4: Economic Environment Summary ...........................................4
4.1: China Gross Domestic Product..........................................4
4.2: China Current Account........................................................5
4.3: Disposable Income per Capita............................................7
5: Trade between Australia and China.........................................7
6: The Socio-Cultural Environment..............................................9
7: Key Issues..................................................................................10
7.1: Strengths .............................................................................10
7.2: Weaknesses.........................................................................10
7.3: Opportunities ......................................................................10
7.4: Threats .................................................................................10
8: Summary and Recommendations..........................................11
Reference........................................................................................13
5. 1
1: Introduction
The purpose of this report is to outline all of the factors relating to the
internationalisation, penetration and marketing of an organisation into new,
emerging foreign trade markets. The report first delivers a background of the
organisation, Dorrien Estate and its product, wine. The report then leads into
a discussion of internationalisation of an organisation within a foreign market,
including an analysis of advantages, benefits and disadvantages of
internationalisation.
The report also addresses the current economic and socio-cultural climate of
the target market, China. An overview of the current state of the Chinese
economy is addressed, along with an evaluation of the current social and
cultural factors that may effect and influence the business and marketing
practices of the organisation in entering the Chinese Wine Market.
The report then outlines key issues and addresses relevant strengths,
weaknesses, opportunities and threats associated with entry of the
organisation into the target market. The report concludes with a summary of
all points raised and delivers recommendations based on the elements
discussed within the body of the report.
2: Organisationand ProductBackground
Dorrien Estate is a state-of-the-art winemaking facility based in the Barossa
Valley of South Australia. Owned by Woolworths, Dorrien Estate is a contract
winemaking facility that specialises in producing small parcels of premium
boutique wines for Australian growers and winemakers as well as producing
wine under its own label (Dorrien Estate, 2013). Dorrien Estate has the ability
to crush 16,000 tonnes of fruit and warehouses approximately half a million
cases of finished wine and is capable of holding 8.9 million litres of wine within
tanks located at the facility. (Dorrien Estate, 2013). The organisation does not
actively market it’s products in the international market and due to the large-
scale nature of operations, is seeking to export and market the commodity to
larger, international markets, with a focus on the Asian market, and in
particular, China.
6. 2
3: InternationalisationDiscussion
The proliferation of globalisation, highlighted by Picton and Broderick (2005)
as the process through which individuals, organisations and governments
become increasingly interconnected, has led to the expansion of markets
across borders and continents and increased trading of commodities across
international borders by organisations. This expansion of markets and
increased global competition has led to organisations adopting and
implementing marketing processes and activities, referred to as international
marketing, to take advantage of growth and profit opportunities beyond
domestic boundaries (Simmonds, 1999; Rundh, 2007).
International Marketing is defined as the execution of activities by an
organisation which attempts to plan, price, promote and channel the flow of
commodities to various global markets (Cateora et al, 2012). International
marketing is closely aligned with internationalisation, which can be described
as the processes leading to identifying and entering international markets
(Elliot, Rundle-Theile & Waller, 2010). Internationalisation is an increasing
trend amongst organisations and can be attributed to a number of factors
including rapid domestic market saturation and limits placed on domestic
growth in the home country by public policies that limit further growth in
market share for an organisation (Chen, 2011). Internationalisation can be
advantageous for an organisation, but can also deliver challenges and
disadvantages.
3.1: Advantage and Benefits
There are many advantages for an organisation to internationalise its
operations. The expansion of trade across borders and continents allows
organisations to enter and compete in larger markets, which can lead to
greater market share and profits (Calof & Beamish, 1995). Internationalisation
allows for identification of organisational growth or niche opportunities located
across borders and continents (Anderson, 1999). Entering the international
marketplace allows for greater risk distribution for the company, alleviating the
susceptibility to domestic economic cycles and reducing the reliance on
domestic economies to generate profit (Cadogan, 2012).
7. 3
Firms also benefit from greater economies of scale by increasing the
dimension of operations, leading to reduced production costs and greater
profit margins (Williams, 2011). Internationalisation also has the benefit of
expanding both product and brand awareness across both domestic and
international markets. Companies also benefit from accessing new
technologies or information gathered from international markets, allowing for
more efficient and effective business and marketing practices (Cadogan,
2012; Williams, 2011). In line with these advantages and benefits, there are
also disadvantages and barriers.
3.2: Disadvantages and Challenges
In line with the advantages of internationalisation, there are also potential
disadvantages and challenges presented to organisations seeking to expand
business operations on an international scale. Organisations are faced with
several uncontrollable macro-economic aspects including demographic,
socio-cultural, economic, legal, political, technological and natural factors that
may affect international operations (Cateora et al, 2012).
Firstly, companies may be susceptible to economic downturns occurring in
foreign markets, along with fluctuations in monetary exchange rates that may
affect logistical and production costs, leading to reduced profit margins
(Rundh, 2007). Organisations are also vulnerable to political instability that
may adversely affect current trade agreements and profit repatriation policies
(Chung, Wang & Huang, 2012). Companies may also be at a disadvantage in
relation to reduced or inadequate information technologies and industrial
infrastructures in foreign markets. The difficulty of obtaining scarce, required
natural resources in foreign markets may also place companies at a
competitive disadvantage (Leisch, Welsh & Buckley, 2011).
In conjunction with numerous possible disadvantages, organisations face
several challenges that need to be addressed in order to successfully expand
and succeed within foreign environments. The primary challenge to success
in a foreign marketplace is a marketer’s self-reference criterion (SRC), which
is an unconscious reference to one’s own cultural values, experiences and
knowledge for a basis for decisions (Cateora et al, 2012). A marketers’ SRC
8. 4
can adversely affect business decisions relating to international environments,
as philosophies, values and knowledge may not be easily transferrable across
differing markets and cultures. In combination with SRC, ethnocentrism, which
is the belief in the superiority of one’s own culture or company (Cateora et al,
2012), is also seen as a challenge to successful internationalisation.
Ethnocentrism affects the ability of an organisation to effectively assess
foreign market situations and may impede the execution of accurate
management decisions in an international market environment.
Finally, companies are faced with religious, cultural and language barriers that
may adversely affect or change the ways business is conducted in a foreign
market. Organisations operating in more than one foreign marketplace also
face a greater range of managerial obstacles, as solutions and policies may
not be easily transferrable between foreign markets, and uncontrollable
factors may differ from country to country (Williams, 2011).
4: Economic EnvironmentSummary
Dorrien Estate has chosen to enter the foreign market of the People’s
Republic of China, an in the course of due diligence, must have a thorough
knowledge of the current economic climate of the target market before
undertaking international marketing opportunities.
4.1: China Gross Domestic Product
With a population of 1.3 billion, China recently became the second largest
economy behind the United States of America (The World Bank, 2013), and is
increasingly playing an important and influential role in the global economy.
The Gross Domestic Product (GDP), which is the total value of goods
produced and services provided in a country during one year, in China was
worth 7298.10 billion US dollars in 2011, as shown in figure 1. The GDP value
of China represents 11.77 percent of the world economy (World Trade
Organisation, 2013), highlighting the fact the country has a very robust
economy and strong trading power.
9. 5
4.2: China Current Account
As shown in figure 2, China has a Current Account of USD$65.8 Billion. The
current account is the sum of the balance of trade (exports less imports of
goods and services), net factor income and net transfer payments (Griffin &
Pastay, 2013) China’s current account reflects the fact that the country has a
positive account surplus, which highlights the fact the country’s wealth
generation exceeds its expenditure, allowing the country to invest and create
better domestic infrastructure and employment opportunities, which in turn
leads to an increased standard of living for the population. This increase in
living standards has led to a greater demand for foreign products by Chinese
consumers, opening up new markets for products.
Figure 1: China GDP (www.tradingeconomics.com, 2013)
10. 6
Figure 2: China Current Account (www.tradingeconomics.com, 2013)
Figure 3: China Disposable Income Per Capita (www.tradingeconomics.com,
2013)
11. 7
4.3: Disposable Income per Capita
The rapid growth of the Chinese economy in recent years has led to a rise in
the Disposable Income per Capita for a larger proportion of the Chinese
population, as shown in figure 3. Disposable Income is the amount of money
that households or persons have available to spend and save after paying
income taxes and pension contributions to the government (Griffin & Pustay,
2013). Higher levels of disposable income has seen increases in demand for
foreign products, which in turn opens up new opportunities for Dorrien Estate
to promote and sell wine in the Chinese Market.
5: Trade between Australia and China
Currently, there is no Free Trade Agreement (FTA) between Australia and
China. An FTA is an international agreement between two or more countries
to eliminate tariffs on all trade between them (Department of Foreign Affairs
and Trade, 2013). Wine imported to China from Australia is subject to tariffs
as well as a range of other taxes, duties and fees such as a liquor tax, an
education tax, a value-added tax of 17.5%(VAT) and a consumption tax
(Department of Agriculture, Fisheries and Forestry, 2012). A tariff is defined
as a tax imposed by a government on goods entering its country (Cateora et
al, 2012). Import tariffs provide an effective barrier to trade by raising the price
of a commodity in the importing country, and as a result, demand for the
imported good fails (Griffin & Pustay, 2013). In spite of the barriers of entry
imposed, Australian wine exports to China have seen a significant rise and
China has surpassed Japan, becoming the largest export market in Asia for
the Australian wine industry since 2007(Wine Australia, 2013), with Australia
also ranking second largest overall supplier of bottled wine to China after
France, as shown in figure 4.
12. 8
Figure 4: China Wine Market Imports by Country of Origin (Department of
Foreign Affairs and Trading, 2013)
Currently, there are no import limits or product exclusions relating to the
export of wine to China from Australia. China currently has free trade
agreements with both Chile and New Zealand in respect to wine imports.
Australia and China entered into bi-lateral dialogue in 2005 and the Australian
Trade Commission is working closely with the Chinese government to
eliminate tariffs imposed on wine and other agricultural imports by China
(Department of Foreign Affairs and Trade, 2013). A reduction or elimination of
current tariffs would benefit the Australian wine industry with an increased
demand for Australian wine in the Chinese market and a significant reduction
in price of Australian wine for the Chinese consumer (Department of
Agriculture, Fisheries and Forestry, 2012). In line with understanding the
current economic climate of China, Dorrien Estate must be aware of and
evaluate the Chinese socio-cultural environment.
13. 9
6: The Socio-CulturalEnvironment
Upon entering a new foreign trade market, organisations must be ‘globally
aware’, taking into consideration and being conscious of cultural and social
influences, along with having a sound knowledge of economic and political
trends (Williams, 2011). Socio-cultural factors such as thoughts, beliefs,
rituals, cultural, social and historical values can affect consumer attitudes and
shape buyer behaviour (Clow & Baack, 2012; Pickton & Broderick, 2005), with
culture seen as one of the most critical factors for organisations to consider
when entering new foreign markets, as it can hinder an organisations’ global
integration and coordination on international marketing strategy (Tae Won &
Sang Il, 2011, p.19). Dorrien Estate must take into consideration the outlined
socio-cultural factors. Understanding wine consumption behaviour and the
cultural and behavioural attitudes will assist the organisation to develop
innovative marketing strategies, increase sales and produce higher profits (Lui
& Murphy, 2007).
In Chinese culture, wine has always represented an image of both luxury and
decadence (Camillo, 2010; Thorpe, 2009). The majority of Chinese
consumers assess the quality of imported wine based on perceived factors,
including (in order of priority) price, country of origin, packaging labeling,
image and quality, and less emphasis on variety, aging or cellar management.
(Camillo, 2010: Jenster & Chen, 2008) Literature shows that social interaction
and word-of-mouth recommendation, primarily through friends and co-workers
is the most widely accepted channel of awareness among Chinese
consumers (Lui & Murphy, 2007; Yu et al, 2009). Due to the expansion of the
Chinese economy and the proliferation of middle and upper income classes,
consumption and knowledge of imported wines is seen as a symbol of status
and sophistication. Another critical socio-cultural factor is the perception that
wine is healthier than Chinese spirits because wine contains less alcohol (Lui
& Murphy, 2007; Yu et al, 2009). Furthermore, China’s culture of face value,
mainzi (“Face” in Mandarin) is a factor than plays a critical role in Chinese
culture (Camillo, 2010, p.74). Chinese purchase expensive wine for public
occasions and celebrations, yielding more “face”, or recognition and respect in
the presence of others. Chinese consumers also purchase and consume wine
14. 10
for the perceived health benefits as well as symbolic reasons, such as good
luck, as the colour red in China is seen as a symbol of good fortune and
prosperity (Lui & Murphy, 2007; Camillo, 2010; Yu et al, 2009).
7: Key Issues
7.1: Strengths
China is an expanding economy and as shown in figures 1, 2 and 3, reflect
that the Chinese economy is growing, with the standard of living and levels of
disposable income rising, leading to increased consumer spending and
demand for both foreign and domestic products. The growth of the economy
has allowed organisations to internationalise and enter the Chinese market.
The large scope of the Chinese market
7.2: Weaknesses
Differing managerial processes, lack of socio-cultural understanding,
organisational ethnocentrism and SRC can be detrimental to an organisation
seeking to expand into the Chinese market. Dorrien Estate must have a
thorough understanding of Chinese business practices and socio-cultural
factors and be ‘globally aware’ in order to be competitive and capture market
share in the Chinese trade environment.
7.3: Opportunities
Social-cultural attitudes and beliefs of the Chinese consumer towards wine
open up a range of opportunities for Dorrien Estate. With effective marketing
and a good understanding of social and cultural trends, the organisation has
the opportunity to deliver quality products to an ever-expanding consumer
base.
7.4: Threats
Uncontrollable elements such as economic, political, competitive and cultural
factors can be perceived to be a threat to market entry by Dorrien Estate.
Import tariffs and free trade agreements with other countries can also attribute
to difficulty in gaining a competitive advantage within the Chinese wine
15. 11
market. Due to the proliferation of the Chinese economy and the new,
emerging demand for foreign wine, other organisations are entering the
Chinese market, leading to a greater amount of competition within the
marketplace.
8: Summaryand Recommendations
China is an emerging global power with a thriving economy. Increasing
standards of living, rising levels of disposable income and expanding social
classes has led to an increasing demand for foreign products and services,
including imported wine. Dorrien Estate is seeking to enter the Chinese
market and take advantage of the growing trend of imported wine
consumption. In entering the foreign market, the organisation must take into
consideration certain uncontrollable political, legal economic, cultural,
technological, environmental and competitive factors. Advantages can be
gained from internationalising the organisation, including larger target
markets, greater brand awareness and risk distribution. In entering the
Chinese market, Dorrien Estate also faces several disadvantages such as
heavy tariffs imposed on wine imported from Australia, and the unfamiliarity of
fluctuating exchange rates and increased competitor activity due to the
thriving Chinese market. The organisation also faces the challenges of
understanding an interpreting the socio-cultural values and must address and
adapt the organisational SRC and have a clear understanding of ethnocentric
philosophises that may hinder marketing to the foreign market.
Although there are tariffs currently imposed on Australian wine imports and
there is strong competition from other organisations due to free trade
agreements, the report has shown that Chinese buyer behaviour and socio-
cultural attitudes reflect that Australian wine is perceived to be of high quality
and value and there is a great demand for Australian product due to the
perception of wine consumption being associated to symbols of status,
wealth, heath and well-being.
Dorrien Estate can take advantage of these beliefs and attitudes when
executing its marketing strategy and plan. In light of all the analysis given in
the report, it can be recommended that Dorrien Estate has a good opportunity
16. 12
to internationalise and gain a good percentage of market share, leading to
greater brand and product awareness and competitive advantage.
17. 13
Reference:
Andersen, O 1993, 'ON THE INTERNATIONALIZATION PROCESS OF
FIRMS: A CRITICAL ANALYSIS', Journal Of International Business
Studies, vol. 24, no. 2, pp. 209-231
Cadogan, J W 2012, “International Marketing, strategic orientations and
business success: Reflections on the path ahead”, International
Marketing Review,vol. 29, no.4, pp. 340-348
Calof, J L & Beamish, P W 1995, “Adapting to foreign markets: Explaining
internationalization”, International Business Review, vol. 4, no. 2,
pp.115-131
Camillo, A A 2012, "A strategic investigation of the determinants of wine
consumption in China", International Journal of Wine Business
Research, vol. 24, no. 1, pp. 68-92
Cateora, P R, Sullivan Mort, G, Weerawardena, J, D’Souza, C, Taghian, M &
Graham, J L 2012, International Marketing, 2nd edn, McGraw-Hill, North
Ryde, Australia
Chen, C 2011, “Integrated Marketing Communications and New Product
Performance in International Markets” Journal of Global Marketing, vol.
24, pp. 397-416
Chung, F L, Cheng, L W & Huang, P 2012 "A contingency approach to
international marketing strategy and decision-making structure among
exporting firms", International Marketing Review, vol. 29, no. 1, pp. 54 -
87
18. 14
Clow, K & Baack, D 2012, Integrated advertising, promotion and marketing
communications: Global edition, 5th edn, Pearson Education, Upper
Saddle River, NJ
Department of Foreign Affairs and Trade, 2013, Australia-China Free Trade
Agreement negotiations, Department of Foreign Affairs and Trade,
2013, viewed 1 March, 2013 <http://www.dfat.gov.au
/fta/acfta/index.html>
Department of Agriculture, Fisheries and Forestries 2013, Wine policy,
Department of Agriculture, Fisheries and Forestries 2013, viewed
1 March, 2013 <http://www.daff.gov.au/agriculture-food/wine-policy –
31k>
Dorrien Estate 2013, Home, Dorrien Estate, viewed 1 March 2013
<http://www.dorrienestate.com.au/>
Elliot, G, Rundle-Thiele, S & Waller, D 2010, Marketing, John Wiley & Sons
Australia, Ltd, Milton Qld 4064
Griffin, R W & Pustay, M W 2013, International Business, 7th ed, Pearson
Education, Upper Saddle River, NJ, Books24x7
Jenster, P & Cheng, Y 2008, "Dragon wine: developments in the Chinese
wine industry", International Journal of Wine Business Research, vol.
20, no. 3, pp. 244-259
Liesch, P, Welch, L, & Buckley, P 2011, 'Risk and Uncertainty in
Internationalization and International Entrepreneurship Studies',
Management International Review, vol.51, no. 6, pp. 851-873
19. 15
Lui, F & Murphy, J 2007, “ A qualitative study of Chinese Wine consumption
and purchasing: implications for Australian Wines”, International
Journal of Wine Business Research, vol.19, no. 2, pp. 98-113
Pickton, D & Broderick, A 2005, Integrated Marketing Communications, 2nd
edn, Pearson Education Limited, Essex, Harlow
Rundh, B 2007, “International marketing behaviour amongst exporting firms”,
European Journal of Marketing, vol. 41, no. 1, pp.181-198
Simmonds, K 1999, ‘Executive insights: international marketing – avoiding the
seven deadly traps. Journal of International Marketing, vol. 7, no. 2, pp.
51-62
The World Bank, 2013, China, The World Bank, 2013, viewed 1 March 2013
<http://data.worldbank.org/country/china>
Thorpe, M 2009, "The globalisation of the wine industry: new world, old world
and China", China Agricultural Economic Review, vol.1, no. 3, pp.301-
313
Tae Won, M, & Sang Il, P 2011, 'The Effect of Cultural Distance on
International Marketing Strategy: A Comparison of Cultural Distance
and Managerial Perception Measures', Journal Of Global Marketing,
vol.24, no. 1, pp. 18-40
Williams, S L 2011, “Engaging values in international business practice”,
Business Horizons, vol. 54, no. 4, pp. 315-324
Wine Australia, 2013, China, Market Programs, Wine Australia, 2013, viewed
2 March <http://www.wineaustralia.com/en /Market%20
20. 16
Development/Market%20Programs/China.aspx
Yu, Y, Sun, H, Goodman S, Chen, S & Ma, H 2009, "Chinese choices: a
survey of wine consumers in Beijing", International Journal of
Wine Business Research, vol. 21, no. 2, pp.155-168