...The Research Proposal For The Relationship among Shanghai Commercial Housing Price and Four Variables, Disposable Income, Completed Housing Area, Interest Rate, and Inflation Rate (2007-2010) BY FIN (2) Yang Bohan 0730200084 Tel: 13750016724 Guo Bingyu Liu Yuanjia Xia Jinjing Teng Linyan Li Hui 0730100034 0730100086 0730200079 0730200063 0730200148 Beijing Normal University – Hong Kong Baptist University United International College May 14, 2010 0 Table of Content 1. 2. 3. 4. 6. 7. 8. Title ........................................................................................................................................... 4 Introduction ..............................................................................
Words: 7950 - Pages: 32
...Market Analysis | Nando’s going into China | | Muhammad Usman Dastgir (23104392) | 8/24/2012 | | Executive Summary This report is designed to provide an environmental analysis for the penetration of Nando’s into the Chinese market. Nando’s is a South African based multinational which specializes in fire grilled chicken, promoting a healthy lifestyle through their signature offering of a grilled piece of chicken with side dishes. With a population of more than 1.3 billion, China is the most populous country on earth and the growing economy provides a higher disposable income for consumers. Moreover a growing trend of western cuisines has strengthened this industry and laid a perfect platform for Nando’s to enter the market. The Chinese consumers belong to a well knit community and believe in benefit for all. Thus Nando’s needs to engage the locals in the business as much as possible to create friendly ties which will help the company establish itself. Furthermore with the acceptance of Western culture, multinationals aspiring to enter the Chinese market find it much easier to penetrate the market. Over the years, China has transformed into a growing country and a superpower, and comparatively boasts of a stable political and legal system. Although it may not be ranked highest on the ‘ease of doing business’ scale, China has nevertheless transformed itself into an investment hotspot. It could be concluded that China has rapidly transformed itself from a...
Words: 3060 - Pages: 13
...In some ways I agree the economic growth can be desirable, however there can be some negatives towards it. My first point is that economic growth can lead to an increase in standard of living, this is clearly a good thing. tho scan be seen in China, over the last 20 years china has seen some massive economic growth which has brought thousands out of poverty. If standards of living are increased then disposable income also increases which leads to an increase in consumer spending. If more people are spending money then the economy grows. Secondly economic growth can lead to an income rise And income rise can also lead to an increase in disposable income. Therefore bot these points lead to an increase in consumer spending and also an increasing aggregate demand, leaving real national output to increase. The benefits of economic growth for all economies and especially LEDCs are increased employment, reduced poverty and a high standard of living. These events occur because as AD increases, more factors of production, most notably labour are needed to produce goods and services for the economy. When this occurs on a large scale unemployed workers shift into employed. This is beneficial as governments provide less social security for the population so they can spend more money on public services. As a result of increased government spending, the quality of services such as education, health and shelter will become better hence improving the standard of living. Previously unemployed...
Words: 416 - Pages: 2
...desserts and beverages that drive traffic, improve profitability and broaden restaurant appeal to the widest possible consumer base. Now, this snacking trend has grown into a worldwide phenomenon, driven by growing consumer demand for variety, value, portion control, small luxuries and new dining experiences. The trend is particularly evident in fast food, led by McDonald's and its success with specialty beverages in the US, desserts in developing markets and snack-size items system-wide. The trend offers a variety of benefits for operators that vary by market maturity: In developed markets, snacking items can be used to drive incremental traffic and take share from competitors; in emerging markets, the same can be used to appeal to lower-income consumers who may not be able to afford full meals. A focus on taking share In developed markets, the effects of the recession have left restaurant operators fighting for share in stagnating, or even declining, markets. In Japan, consumer foodservice value sales have declined each year since 2004, and in the US value has not grown since 2007. Other major markets, including France, Spain and the UK, have all shown a net decline in value since 2007, and many are expected to see this stagnation continue through 2011. As such, operators in these markets can no longer rely on organic growth to boost sales year after year. Transactions are also declining in many markets (as much as 3% between 2009 and 2010 in France and Spain). Consumers are...
Words: 1240 - Pages: 5
...Indian Car Manufacturers Contents Executive Summary Introduction Overview Brazil Russia India China Conclusion Appendix Sources Contacts 4 6 7 10 15 19 24 29 31 33 34 Executive Summary The BRIC block has emerged as the economic power house of growth for the automotive industry through the last decade. What started as an exploration of new/extra markets for car sales in the early 90s has gone on to become the mainstream market of the new millennium. Supported by attractive macro-economic factors such as growing economic activity, urbanization, rising household incomes, developing credit markets and very low car density, the BRIC countries currently make up for the top 7 automotive markets globally. The BRIC block has been strongly growing for over 10 years; with 3 of 4 BRIC economies surging ahead even during the 2008 economic crisis. So that prompts us to ask how the dynamics have transformed over the years. What were the major drivers of growth in car sales in the last decade and into the future? Is the current slowdown a blip or is it here to stay? More importantly, what does the growth dynamics in China, Brazil and Russia mean to the Indian automotive market? We offer our perspective on the impact of macroeconomic factors on car sales in the BRIC block between 2001 and 2011. Below are the key findings of our analysis: 1. Car sales in Brazil, Russia, India and China grew at a CAGR of 8.8%, 5.7%, 14.5% and 34.3% respectively as against a globalcar sales average of 4...
Words: 2118 - Pages: 9
...Krishna Burberry: Burberry moved manufacturing work overseas to China (offshoring). This involved the closure of their factory in Rhondda, causing 300 jobs to be lost in Rhondda. Consequently staff were crying when given the news and protests were held, causing the reputation and brand image to worsen in the short-term of Burberry as a result of making such an unethical move. This was a large concern as Burberry provided well-paid, quality employment, so the 300 job cuts in Rhondda meant a sad loss to the development of the economic infrastructure of Rhondda. Also in the short-term Burberry had to suffer larger cash outflows due to the redundancy payments. However the lower labour costs in China, although rising, allowed profits to rise. Also Burberry saw a 19% sales revenue rise, due to the rising customer disposable incomes in China, and as a result profits rose. Therefore in the short-term the move to China was not good as it meant large cash outflows due to the redundancy payments, and the job cuts in the UK made Burberry receive an unethical, negative brand image and reputation, reducing sales and profits. Although in the long-term Burberry is likely to benefit from greater sales and so more profits, particularly due to lower labour costs, but this depends on the rate at which labour costs are rising in China relative to that of the UK, and how high the shipping costs are of the goods from China to the UK. Dyson: Dyson's very innovative bladeless fan was the result...
Words: 7669 - Pages: 31
...“LAST TRAIN HOME” A CASE STUDY OF THE CHINESE RURAL MIGRANT WORKER Introduction China's massive population has always been a major difficulty for the government as it has struggled to provide for it. The major economic changes of China in the last decade have brought on new and different economic and social challenges. Some of these issues are depicted in the documentary film “Last Train to China.” The purpose of this paper is to discuss some of these points that the film brings to light and see how they affect China today. Media reports on social and economic conditions in China present a contradictory picture. The cliché that hundreds of millions of people have been 'lifted out of poverty' is repeated again and again, alongside lurid accounts of worsening social problems which threaten to engulf the country in conflict. Both of these claims have a basis in fact. Most people, not only the rising class of millionaires, have gained materially as a result of China's huge increase in GDP. However, because of the increased role of the influence of the market and the breakdown of socialist institutions, this added wealth has been accompanied by many damaging effects such as mass unemployment, inhumane and dangerous working conditions, and inadequate health care. Some of these effects and the consequent breakdown of the traditional Chinese social structures, especially in the rural areas are seen in real life in the “Last Train”, and will be analyzed in this paper. ...
Words: 3232 - Pages: 13
... "High saving promotes faster growth. So having more savers in the global economy should be good for our long run prosperity." Long-term economic growth is the expansion of the productive potential of an economy. Therefore, to ensure such growth, aggregate supply must continually shift outwards as shown in the diagram below. AS AS Price Level 1 2 P 1 P 2 AD Figure 1: Long-term economic growth 1 Real Gross Domestic Product Y Y 1 2 The diagram shows aggregate supply shifting outwards from AS to AS and consequently the price level falls from P to P and real gross domestic product rises from Y to Y . 1 1 1 2 2 2 Saving refers to the income of a household, firm or government that is not spent but set aside for future consumption or investment. It is vital to an economy because it provides finance for capital investment. Investment refers to the purchase of capital goods, which are used to aid further production, meaning the productive potential of the economy increases. Without such investment, aggregate supply and the productive potential of the economy would remain static. If this were to be accompanied by aggregate demand increasing at a fast pace, overheating in the economy would be the likely result. AS Price Level 1 P P 2 1 AD 1 Real Gross Domestic Product ...
Words: 2963 - Pages: 12
...China may lean more on interest rate rises to fight inflation http://economictimes.indiatimes.com/news/international-business/china-may-lean-more-on-interest-rate-rises-to-fight-inflation/articleshow/9195508.cms Fighting inflation while keeping the domestic currency weak to stimulate exportation is a very prominent problem that most likely every policymaker would rather choose not to handle. It is known that an increase on interest rate would have various economic effects such as of the increase of government debt’s interest payments that would lead to higher taxes in the future, increase of incentive to save in a deposit account due to interest gained, increases the cost of borrowing that will lead to the fall of other areas of consumptions, increase in mortgage interest payments that will have a significant impact on personal disposable income, and most of all raised interest rate will increase the value of the domestic currency, which in case of China becomes unfavorable being an export-driven country. As being called by China “its most prominent problem”, the increase in interest rate was seen widely appealing to US policymakers who has been accusing China of maintaining low interest rates to keep yuan low and exports cheap. Though the said action is considered as Chinese authority’s way of balancing their economy it certainly may speculated that the US and China are in some sort of a deal. The move follows a clear need by the Chinese authorities to take out some of...
Words: 295 - Pages: 2
...over traditional sales, it is not even close to full domination of the retail industry. E-commerce has had significant impact on financial markets. Revenue growth of this sector is higher than that of the economy. Contribution of e-commerce to the GDP is increasing at a substantial rate. This fast growing industry has low entry barriers and is highly dependent on technological advancements. Efficiency and cost of performance are rapidly changing in favor of the industry with the growth in the technology sector. With changing regulations, money market policies supporting more investments, increase in consumer confidence and slow return of economy on track, e-commerce is poised to have a strong and steady growth. There is no denying that the rise of e-commerce and other Internet technologies have had a significant impact on the labor market as well. While many segments were negatively impacted during the...
Words: 2827 - Pages: 12
... positive B. negative C. zero D. impossible to calculate without further information 2. When disposable income (DI) is zero, ______ . A. autonomous consumption is equal to induced consumption B. autonomous consumption is equal to total consumption C. induced consumption is equal to total consumption D. autonomous consumption is zero E. induced consumption is greater than zero 3. The minimum amount that people will spend even if DI is zero is called _____ consumption. A. autonomous B. permanent C. induced D. total E. special 4. According to the permanent income hypothesis, if a person won the lottery, they would spend _____ that year. A. all of the winnings B. some of the winnings C. none of the winnings D. more than all of the winnings 5. The permanent income hypothesis is a theory from economist _____ . A. Adam Smith B. John Maynard Keynes C. Thorstein Veblen D. Milton Friedman E. Karl Marx 6. Conspicuous consumption is a theory from economist _____ . A. Adam Smith B. John Maynard Keynes C. Thorstein Veblen D. Milton Friedman E. Karl Marx 7. In the U.S., the largest component of C is ______ . A. durable goods B. services C. nondurable goods D. inventory E. residential housing 8. The consumption function tells us that, as income rises, consumption _____ . A. declines B. remains the same C. rises but more slowly than disposable income D rises but more quickly than disposable income 9. When DI levels are very low (close to zero), C is _____ . A. zero B. higher than DI C. lower...
Words: 3486 - Pages: 14
...China research – Bullet 5 Demographics Political and legal environment in China make it very volatile for business outside of the country. China is undergoing massive urbanisation with millions (160m) of people moving from rural to urban environments. However the mass industrialisation comes with a lot of pollution costs. The urbanisation is pushing up consumption per person but also increasing income per person. Population in China is suspected to reach 1 billion by 2030. The scale and pace of China's urbanization continues at an unprecedented rate. If current trends hold, China's urban population will hit the one billion mark by 2030. In 20 years, China's cities will have added 350 million people more than the entire population of the United States today. By 2025, China will have 221 cities with one million–plus inhabitants—compared with 35 cities of this size in Europe today—and 23 cities with more than five million. For companies in China and around the world, the scale of China’s urbanization promises substantial new markets and investment opportunities. Yet the expansion of China's cities will represent a huge challenge for local and national leaders. Of the slightly more than 350 million people that China will add to its urban population by 2025, more than 240 million will be migrants. This growth will imply major pressure points for many cities including the challenge of managing these expanding populations, securing sufficient public funding for the provision of social...
Words: 1202 - Pages: 5
...Unit 1: Business Environment | Assignment 3: The Impact of Business Environment on Organisations | For the attention of: Tracey baker | In this report I will talk how two businesses operate and function in two different economies. The report will also include a detailed outline on how political, legal, social factors affect both businesses in two economies. The two organisations may face challenges in the future and how political, legal and social factors may impact an organisation. P5 Tesco (UK) What is an economy? An economy is made of millions and millions of people making decisions, trading goods and services. The economy applies to everyone from individuals entities such as corporations and governments. The economy of a particular region or country is governed by its culture, law, history, and geography among other factors. There are three types of economies market economy, command economy and mixed economy. The economy is very influential on how good Tesco do in a financial year; so if there is a good economic environment the confident customers will be more willing to spend money than customers with low confidence, which means that Tesco is more likely to benefit if the customer confidence is high. Stages of high customer confidence can confidence can present opportunities for Tesco to expand or bring new products to the market. Low confidence of customer’s means that Tesco have to cut cost to maintain profits. The UK economy is currently in the...
Words: 6749 - Pages: 27
... 3 4‐ Global Outlook & Analyzing Regions 3 5‐ Regions' GDP% (Annual Growth) 4 6‐ Global Consumer Demand 5 7‐ Global Competitiveness 5 8‐ Target Country : China (Shanghai) 6 A‐ Economic Growth (GDP%) 6 B‐ Disposable Income 7 C‐ Consumer Behavior 7 D‐ Technology 7 9‐ Risk Factors 8 10‐ Recommendations 8 References 9 Appendices : 11 Appendix 1 : SWOT Analysis for Chinese Market 11 Appendix 2 : PESTLE Analysis 12 Appendix 3 : Useful Charts and Diagrams 13 1 1‐ Executive Summary In response to the good world economic growth, the global restaurant industry is increasing in a striking way. In order to preserve higher sales and revenues, companies must seek new strategies to attain success. One of those good strategies is to expand in countries that possess healthy economic situation. The Cheesecake Factory already has well‐recognized footsteps in America and Middle East, but still needs to adjust with the high competition in these regions to get distinguished. Therefore, one of the regions that the Cheesecake Factory has no presence in it is China, the country with the highest population in the world. By entering the Chinese market, the restaurant would be able to target the upper middle class...
Words: 4495 - Pages: 18
...Energy Economics 31 (2009) 882–887 Contents lists available at ScienceDirect Energy Economics j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / e n e c o Economic impacts of higher oil and gas prices The role of international trade for Germany Christian Lutz a,⁎, Bernd Meyer a,b a b Institute for Economic Structures Research (GWS), Osnabrueck, Germany University of Osnabrueck, Germany a r t i c l e i n f o a b s t r a c t The analysis concentrates on direct and indirect price increases, induced shifts in international trade and structural changes in the oil importing economies. The paper at hand asks, whether a stabilizing effect via international trade and domestic structural change on the GDP of oil importing countries can be observed, if a permanent oil price increase occurs. At least for Germany, structural change from consumer goods to investment goods industry and an improvement of international competitiveness limit negative impacts of increased energy prices. Analysis is based on the extensive and disaggregated global GINFORS model and the detailed INFORGE model for the German economy. © 2009 Elsevier B.V. All rights reserved. Article history: Received 15 July 2008 Received in revised form 13 January 2009 Accepted 27 May 2009 Available online 6 June 2009 JEL classification: Q43 C53 C67 F17 Keywords: Global modelling Energy prices and the macro economy International trade 1. Introduction Oil price shocks have negative...
Words: 5593 - Pages: 23
