...Market Liberalization… with Chinese Characteristics: Can the Chinese Yuan become a Global Reserve Currency? Abstract China’s economy is growing ever larger, but is that enough to get the Chinese Renminbi (more commonly known as Yuan) to be accepted as a global market currency? This paper will look into the liberalization, but with Chinese characteristics, of five determining factors in becoming a country who’s currency is a global reserve currency. These factors are as follows: economic size, macroeconomic policies, flexible exchange rates, financial market development, and finally having an open capital account, and will ultimately prove the China is not quite the rising economic power some believe it to be (citation, 2012). Market Liberalization… with Chinese Characteristics In China, it is currently the year of the dragon, a symbol of good fortune and sign of intense power. With this symbol of fortune and power many Chinese are hoping for a year of economic prosperity, especially for the growth of the Renminbi, or more commonly known as the Yuan. In recent years, China has maintained that it’s “special” economy is pursuing a “market economy, but with Chinese characteristics”. Some of these characteristics include encouraging more of an international use of the currency, while being famous for their inflexibility with exchange rates, and not fully opening up the economy to the free flow of capital. However, the Yuan’s acceptance as a reserve currency...
Words: 1523 - Pages: 7
...trade for the appreciation of RMB exchange rate and related suggestion In my report, the RMB is selected as the target currency. I think this is because China is the biggest developing country in the world. China ranks the first in terms of international trade. And recently，many countries request China appreciate RMB exchange rate. Although the international trade develops very well in China, but one cannot be ignored in fact is that most of these output products from labor-intensive industries. It means there just exist a little profit in per product. So the output will be influenced a lot by the adjustment of exchange rate. That if the appreciation of RMB exchange rate good or not becomes a hot topic. In my report, I try to analyze the reason of the appreciation RMB exchange rate. I will analyze it from China aspect first, and then the reason from the world. In this part, I need various statistics to support my viewpoint. For example, the chart of the history statistics and expert idea. And then I will analyze the impact of international trade for the appreciation of RMB exchange rate. I this part, I will analyze the benefit of the impact of international trade for the appreciation of RMB exchange rate and the drawback of that. In terms of benefit. I will analyze about the relation as to international trade with other countries such as trade conflict between China and American or the internationalization of RMB problem, the Chinese government pay attention to...
Words: 360 - Pages: 2
...Executive Summary In today’s business environment, the economic boundaries become blurred because of the rapid development of technology which shortens the distance between countries. As different countries have different culture, language, political, geographical and economic factors, we should know how to take advantages from other countries to maintain competitiveness to gain success in the global marketplace (Rothenberg LE 2003). GARSON Corporation is one of the most famous automobile accessories companies in Japan and it already expanded its business to United State as the first step of internationalization. In this report, we are going to explore the possibilities of expanding business in China. The report includes the analysis of the existing automobile accessories market in China, and the country analysis from different perspectives is used to see if China is a good environment to expand the business in it. It is then recommended with the internationalization process, market entry strategy, human resources management strategy in investing in China. All the analysis can help GARSON to confirm its move to investing in China as its 2nd country for business expansion. It also raises some points for GARSON to pay attention to when investing in China. 1. Company Background GARSON Corporation is an automotive accessories company which is originated in Japan. It is established in July 1990 and is dedicated to research and development of high-grade automobile accessories...
Words: 3415 - Pages: 14
...the spring of 2003, while China and the rest of the world were suffering from the sudden outbreak of the severe acute respiratory syndrome (“SARS”) epidemic, the 175-year-old Wang’s Fortune Tea found fortune itself, seeing a phenomenal increase in sales volume of 400% from previous years.2 Wang’s Fortune Tea was founded in 1828 in Southern China by Wang Zebang , who is considered to be the founding father of Chinese herbal tea, a highly regarded form of Chinese medicine. From 1997 to 2002, Wang’s Fortune Tea remained a strong regional brand in China with limited national market penetration. In 2003, following SARS and the company’s change in marketing tactics and positioning, Wang’s Fortune Tea saw explosive growth nationwide and was finally able to break out of its regional image to become a major national brand. In 2006, less than ten years after the drink started selling Chung, O. (11 May 2007) “After the Coke Craze, It’s Tea Time in China”, Asia Times Online, http://www.atimes.com/atimes/China_Business/IE11Cb01.html (accessed 30 October 2007). 2 Translated from Chinese, Lin, S. (林思勉) (9 December 2004) “Positioning, Lifeline of...
Words: 9620 - Pages: 39
...at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2004, 2009 and 2014) and long-term forecasts through 2019 and 2024 are presented. Major producers in China are profiled. Browse Complete Report at: http://www.researchbeam.com/food-containers-in-china-market The primary and secondary research is done in China in order to access up-to-date government regulations, market information and industry data. Data were collected from the Chinese government publications, Chinese language newspapers and magazines, industry associations, local governments’ industry bureaus, industry publications, and our in-house databases. Interviews are conducted with Chinese industry experts, university professors, and producers in China. Economic models and quantitative methods are applied in this report to project market demand and industry trends. Metric system is used and values are presented in either Yuan (RMB, current price) and/or US dollars. Our market research reports provide hard-to-find market data and analyses...
Words: 432 - Pages: 2
...space to improve itself in the future, for example, adding more recreational facilities in ‘Our Kitchen ’ to attract more customers. 2 Introduction The reason why I choose China as the target market is that I come from China and I am more familiar with the Chinese market than the United Kingdom’s, especially Chinese colleges and students. When I arrived at my new dormitory in the University of Birmingham, I was shocked by the big and bright kitchen for 15 students. There is no public kitchen in Chinese colleges, so almost all the students must have three meals in one or several crowded canteens or order takeout every day. As a new graduate from a Chinese college, I could realize that some students are eager to cook for themselves or host a party with their friends. What they calling for is a comparatively private and comfortable environment. At the same time, I know economic environment around Chinese colleges well. Thus I come up with an idea that launching a public kitchen for college students and it could be a brand new food service in the market of Chinese colleges. Moreover, if the idea were to come true, I could get sense of accomplishment when I am doing something more to improve the quality of life of Chinese college students. My business idea which will be explained later in details is setting up a company named ‘Our Kitchen’ to prepare a public kitchen for college students in China. There are three parts in this report. Firstly, PESTLE Analysis, Target Market...
Words: 3390 - Pages: 14
...Graphic [pic] [pic] [pic] Disadvantage of increase Chinese Exchange for China - International Trade Why USA want to increase Chinese Exchange Rate As we all know, China is a big processing and export country, we can see many products all be made in China. Therefore, when the Chinese exchange rate increased, the demand of Chinese product for American companies and residents will be reduced, because the Chinese exchange rate increase, the cost of Chinese products will be increased at the same time, so they have to expend more dollars for Chinese products. The competition of Chinese products will be decreased in American market. For example, the price of one Chinese phone is 100 RMB that be exported to America with 8.264 exchange rate, so the price of this phone in America is $12.1. However, if the exchange increased to 7.0, and the price of this phone is $14.2. According to increase Chinese exchange rate, USA can reduce imports from China and this can be as a Non-tariff barriers. In addition, with the increase of Chinese exchange rate, China will import more products from USA, duo to the lower cost. Therefore, USA want to increase Chinese Exchange not only reduce the export of China, also increase the amount of export to China. Finally, China is the biggest creditor country for America and the amount of national debts is about 1.4 trillion. So the exchange rate increased, America can pay lesser money back for China with lower exchange rate. For example, if the...
Words: 690 - Pages: 3
...Required Report - public distribution Date: 6/27/2005 GAIN Report Number: CH5407 CH5407 China, Peoples Republic of HRI Food Service Sector Mainland China HRI Annual Report 2005 Approved by: LaVerne E. Brabant U.S. Embassy Prepared by: China Food & Agricultural Service, ATO Beijing Report Highlights: China's food service sector continues its eye-popping growth, expanding faster than GDP as newly prosperous urban residents continue to spend disposable income on eating out. Young white-collar workers are developing a taste for western food, and Chinese restaurants are developing a new top tier. Catering for weddings and other events is a new growing sector. The high-end market is spreading beyond the three major cities of Beijing, Shanghai and Guangzhou. Distribution has become more efficient and professional in major cities, but remains problematic elsewhere. Education and training in the use of new products is needed all along the value chain. Competition from other nations and domestic substitution is fierce. Includes PSD Changes: No Includes Trade Matrix: Yes Annual Report Beijing ATO [CH4] [CH] Table of Contents Part I. MARKET SUMMARY 3 A. Market Overview 3 B. Market Drivers 4 C. SWOT Analysis for US Food Products 6 Part II: ROAD MAP FOR MARKET ENTRY 6 A. Market Structure 6 1. Target Population 6 2. Distribution 7 B. Entry Strategy 9 1. Overview 9 2. Marketing, Sales and Education 10 3. Establishing...
Words: 6867 - Pages: 28
...Walmart China associates are Chinese nationals. All our stores in China are managed by local Chinese. Furthermore and more than 60 percent of Walmart China associates are female and about 40 percent of those are at management level. In 2009, the company established the “Walmart China Women’s Leadership Development Commission” for driving women’s career development. Following themes recently emphasized in the Chinese government’s 12th Five Year Plan, we have created programs that support domestic consumption, boost rural economic development, create economic opportunities to raise employment, strengthen food safety systems and promote sustainability across our business. For example, beginning in the 2011 spring season, vegetable farmers in many area of China, including Henan, Shanxi, Guangdong, Zhejiang and Liaoning, have suffered from unsellable vegetables. To answer the call of the Ministry of Commerce and local governments to help this situation, Walmart signed a proposal in Beijing to help farmers sell excess vegetables through our direct farm program. The company has been purchasing vegetables and fruits from farmers and selling them at fair price in its store outlets across China, which has helped farmers through a period of difficulty and ensured that our customers get safe and affordable produce. Community At Walmart China, we are contributing to a harmonious society and community. Over the past 15 years, we’ve donated more than RMB 65 million (USD 9.7 million)...
Words: 728 - Pages: 3
...Should Chinese Men Buy a House? Mr. Zou, who did not get married until he bought a house when he was 35 years old, sold his house last year and earned an extra profit about 200,000 RMB. In China, much more men did not get married because they did not own a house; however, housing price keeps soaring. According to National Bureau of Statistics of China, from 2001 to 2011, during the 10 years, the average selling price of commercialized buildings in China has increased 147% from 2170RMB to 5357RMB per square meter, especially in metropolitan cities like Beijing, Shanghai which increased 243% and 310% respectively. Nowadays, most youth and their parents in China are concerned about the price of apartment and hesitate to buy it; however, during the hesitation, the price has reached a high record. In my opinion, Chinese men should not only buy a house but purchase it as soon as possible because of the impact of traditional custom, fierce marriage market and the best investment strategy. To begin with, if people especially men want to get married; they would better possess a house at first because of the traditional customs. Confucius, who was born in 2500 years ago, was a philosopher of the Spring and Autumn period of Chinese history. The philosophy of Confucius has a great, deep and persistent impact on each generation in China until now. One of his most famous proverbs is “to rightly govern the state, it is necessary first to regulate one's own family” (Dawson, 1915) which...
Words: 1647 - Pages: 7
...“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
...aggregation-arbitrage strategy, and reroute its Levendary China operations to a new arm of its managerial hierarchy. Thus far, Levendary China has suffered from a scattered brand reputation. In a rush to open as many stores as possible, Levendary Café in China has relied upon a pure adaptation strategy, which has fragmented its carefully curated company image. If the company wants to regain full control of its branding, it should only consider establishing wholly-owned operations to avoid losing further control. By turning to an aggregation-arbitrage strategy, Levendary Café can turn also around its profitability by creating economies of scale among its stores and taking advantage of Chinese consumers’ willingness to pay premiums for Western food. An aggregation-arbitrage strategy will transform Chinese store operations to become more standardized so that Levendary Café will have an easier time reporting GAAP-compliant financial performance measures, training its employees under a general program, and...
Words: 3369 - Pages: 14
...value creation activities (Hill, 2012, p. 425). This knowledge of applications has founded the corner stone of the company. Iron Pump is situated in Herlev, near Copenhagen and has around 100 employees. Iron Pump has an annual revenue exceeding EUR 18 million (Iron Pump, Company). With an ambitious growth strategy and full capability of competing globally, Iron Pump seeks continuous global growth in the future (Iron Pump, Company). In 2003 Iron Pump entered the Chinese market by establishing a representative office in Shanghai (Interview, Iron Pump). This report will focus on expansion of Iron Pump into the Chinese market, but why China? Firstly, with an expected GDP growth exceeding 7,5 percent in 2013, the Chinese economy is steadying, showing new signs of stabilization after a 2 year period of cooling due to the global financial crisis, hindering further globalization of new markets (Reuters, 2013). Secondly, from a more market-oriented point of view for Iron Pump, it is critical that the great majority of the Chinese pump market is driven by centrifugal pumps. In 2011 it accounted for 50.56 percent of the total market revenue reaching USD7.28 billion. Additionally, this trend is expected to increase and reach USD10.20 billion by 2015, a 10,67 percent...
Words: 3933 - Pages: 16
...ASSIGNMENT Chinese Foreign Policy ------------------------------------------------- Does Chinese Foreign Policy reflect the concerns of a status quo power or a revisionist power? INTRODUCTION Before addressing this question, it is essential to establish what is meant by a status quo or revisionist power. Hans Morgenthau described a status quo power as one that favours and aims to maintain “the distribution of power as it exists at a particular moment in history”,. Similarly, proponents of power transition theory use the concept of the “rules of the game” regarding nations’ power relations to define status quo and revisionist states, the latter desiring to “redraft the rules” out of a “general dissatisfaction” with their share in the system. Randall Schweller furthers this point by adding military force as a requisite of such ambitions to amend the status quo. For the purpose of this essay, whether a power is status quo or revisionist will be determined by whether its policies aim at acquiring a new power order in its favour. Using this yardstick, this essay will elaborate China’s current behaviour and underlying aspirations to argue that it would be inappropriate or at least premature to stamp the country ‘revisionist’. I will also incorporate Morgenthau’s viewpoint on a status quo’s ‘minor adjustments’ into my reasoning of China’s policy to argue that what could be currently perceived as evidence of Chinese aggressive ambitions are not attempts to reverse the current...
Words: 3606 - Pages: 15
...There were a number of very interesting presentations by excellent leaders and experts from across the industry spectrum. For me, the most compelling of these was the ‘Branding in China’ presentation given by Ruth Ang, and this paper focuses on that topic. The main area that I will be analysing is how Chinese and foreign companies are building brands in China, and what the future holds in terms of branding in China. Here I will look at the activities that firms are pursuing in order to build a lasting competitive advantage, not only in the tier one cities like Shanghai and Beijing, but also in the tier two and three cities where hundreds of millions of consumers live, work and purchase. I will also briefly examine the impact of fake brands in the Chinese market. I then briefly analyse exactly how Chinese companies are positioning their brands outside China, and conclude by looking at what branding and marketing core competencies are required in order to build a lasting competitive advantage both inside and outside China, and how Chinese firms can position themselves to succeed strategically in these fluid markets. 2 Branding in China “If it can be Chinese, it should be Chinese.” (Professor Chris Brady, 2006) One only has to look at some of the big established brands in the West like Coca Cola, Virgin and Easy Group to see that branding is a core competency that can deliver sustainable competitive advantage over the long-term, and thus lead to superior profits and growth over...
Words: 3632 - Pages: 15
