• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The purpose of this report is to outline the opportunities and threats for Australian businesses considering expanding international trade into China.

Extracts from this document...

Introduction

PEST ANALYSIS – CHINA ________________ Name: Jerry Li Date: 25th May 2012 Business class: 10 A Word Count: 1452 words Contents 1 Introduction 2 Main Findings and Analysis 2.1 Political Opportunities and Threats 2.2 Economy Opportunities and Threats 2.3 Social Opportunities and Threats 2.4 Technology opportunities and Threats Conclusion 4 Bibliography 1 Introduction China is the third largest country in the world occupying an area of 9,600,000 km² with an enormous population of 1.347 billion (2011). The land of China is located at middle and East Asia, bounded on the east by the Pacific Ocean. There’re 23 provinces, 5 autonomous regions, 4 municipalities, and 2 Special Administrative Regions, and has approximately 55 different ethnic groups living in different parts of China. (General Facts about China, 2011) China has been known as the largest economy country, it has the world’s fastest growing economy. China is considered to be the most important country in importing and manufacturing industry as almost 70% of the world’s everyday needs are made in China. (The World's Largest Economy 2012, 2012) PEST analysis examines the external environment and global factors that might affect a business on its globalization. ...read more.

Middle

Construction workers are losing jobs in droves and retail sales grew at the slowest pace. The most striking feature of the slowdown is that it extends beyond the coastal provinces, which depend on exports and are closely linked to the global economy, to the country?s far more insular interior. (Chinese Economy, 2012) GRAPH ONE: CHINA?S GDP CHART (Thompson, 2012) This is a great opportunity for businesses willing to expand into China?s real estate industry as the downturn of the China economy has caused properties price to drop majorly so investors are able to purchase properties at a very low price. Also, many workers and builders has lost their jobs because of the downturn, this means businesses can hire workers at a lower rate, which decreases the company?s expenses. As well as the opportunities, the treats of economy in China are that weak businesses owners in China are likely to face a test on their survival this year. Overseas investors can put themselves in a dangerous situation if they invest in the wrong company. Many businesses in the real estate industry are having a hard time as they are forced to drop the property price to as minimum as possible in order to attract more buyers in order to survive in the downturn. ...read more.

Conclusion

Business owners can even buy goods online without wasting time to go out and shop. Some of the possible threats from technology can be internet and technologies isn?t always secure to use, people can hack into business owner?s private network and see a business?s classified information. Also, viruses and Trojan horses on the internet can cause PC to crash and possibly loose important files, even loosing or dropping a PC can cause the computer to break and loose everything saved on the computer. ________________ Conclusion This thorough analysis into China?s political, economy, social and technology has outlined many potential opportunities and threats for businesses wanting to expand their business into the Chinese market. The laws that support importing, the rapid growing economy, the Chinese culture and the use of technology are great opportunities businesses should consider when globalizing the trade. As well as the opportunities, business owners should always consider the possible threats when making decisions so the risk score is reduced to minimal. These factors give an overall idea for a business owner?s decision making, the opportunities and the welcoming spirit Chinese people have towards of foreigners make China an excellent country to begin trading with. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. The Main advantages and disadvantages of mixed economy system

    Market economy also causes unemployment and inflation, which consequently causes a growth of social inequality. All these factors make Market economy impossible without governmental control and protection. 2.4. Mixed economy There is no clear definition of a Mixed economy as it lies between socialism and capitalism.

  2. Free essay

    Unit 21: outline how consumers are protected for the supply of goods/services

    Office go to had to deal with the problems of the faulty OmniaCopy 2010Photocopiers that they sold to Henry Parnell. However as KeyPrint had sold the Photocopiers to Office to go they had to help them deal with these problems.

  1. New business plan

    According to our market research, Chinese still prefer Chinese food when they go overseas for a holiday. As such, they would be attracted to the "Shan" cuisine, which is considered the best cuisine in China. Due to the Royal Food Restaurant in Beijing, this group would also be able to differentiate the taste of the "Shan" cuisine.

  2. In this paper, we will focus in four main factors which had the most ...

    71/2010/ND-CP ("Decree 71") guiding the implementation of the Law on Residential Housing dated 29 November 2005. On 08/08/2010, Decree 71/2010/ND-CP of the Government's guiding Housing Law will take effect for several regulations to minimize risks on real estate market, which, raise capital is a focal point.

  1. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    The 200,000 students working in retail trade represented 10% of all jobs in that industry. It is skilled labour that is in highest demand in the OECD countries. The average unemployment rate for people with lower-secondary education is 10.5 per cent, falling to 3.8 per cent for those with university education.

  2. Difference in working culture of Malaysia & Singapore

    The legal system of Singapore is based on English common law, albeit with substantial local differences. Trial by jury was entirely abolished in 1970 leaving judicial assessment performed wholly by judgeship. Singapore has penalties that include judicial corporal punishment in the form of caning for rape, rioting, vandalism, and some immigration offences.

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    In addition, Apple's consumer electronics are also sold by retailors like Best Buy, Circuit City, Target etc. in their web and local stores. Apple TV is also sold on different online retailers like Amazon.com and Buy.com. ITunes on the other hand is a media and content Aggregator.

  2. Dividend policy at Linear Technology

    return on the share as well, especially if the tax rate for dividends is changed to a lower rate. Investors would have already priced in the tax cost of consistent dividend issue, given the consistent dividend policy of Linear Technology.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work