StudentShare solutions
Triangle menu

Business so Foreign - Essay Example

Nobody downloaded yet
This paper will briefly but sufficiently provide an explanation for this.
China has long been dubbed as the sleeping giant. However, the past three decades saw its awakening as it experience unprecedented economic growth and development. From being a communist republic for a long time it had open its doors to globalization and new economic policies in 1979 (China 2005). This new economic system has paved the way for progress. Currently, China is the sixth largest economy in the world recording the highest growth in real Gross Domestic Product (GDP) at 9.5% during 2004. China's GDP was recorded at US$1.96 trillion in during the same year which is equivalent to 1/7 of the United States' economy. China is now known to be the "new economic giant" (Gulob, 2003).
A small business trying to break into the foreign market can well establish its operation in China. As one of the recently emerging and developing economy, China poses various business opportunities. Simultaneous with the rise in its GDP is the increase in the country's per capita GDP. This, in turn indicates a higher income for individuals and more money to spend. A small business entity can take advantage of this rise in income by offering the Chinese market new and innovative products.
Another reason why China is considered is its relatively lower wage rate. On the average, a Chinese gets $0.40 a day (Hennock 2002). This vast pool of cheap worker can be utilized to the advantage of a small entity as it does not have a large resource to cover high amount of expenses. This implies a huge cost savings for entrepreneurs to invest in other capital needed in their operations.

The Philippines is one of the world's developing economies in the Southeast Asia. Economically, the performance of the country is not impressive due to the constant devaluation of its currency and economic unrest due to political issues (Philippines 2005). However, this country is a promising destination for a start-up business entity.
Foreign investments are highly encouraged in the Philippines. In fact, the Bureau of Investments offers numerous incentives such as: income tax holidays; exemption from taxes and duties on imported spare parts; exemption from wharfage dues and export tax, duty, impost and fees; tax exemptions on breed and genetic materials; tax credits; and additional deductions from taxable income to foreign investors (Fiscal Incentives 2005).
Another advantage in doing business in the Philippines is its cheap pool of skilled workers. The average wage rate in the country is $3-$6 a day (Manpower Costs 2005). However, the country boasts of its over a million secondary school graduates and 350,000 college graduates annually.

The Philippine market is also distinct for its highly Westernized way of living. A large factor which contributed to this is the long period of colonization under the United States. Filipinos are known to have colonial mentality and are very "Americanized." This has a good implication for a small firm as this indicates a large acceptance and preference for foreign products.

India lags behind the economic giants Japan and China in the Asian continent. India is one of the world's largest markets in the world with a population of 1.1 billion. The country continues its economic development following the market-oriented reforms in 1991.
A small business trying to ...Show more


There a various considerations which a small business firm trying to break in the global market should take into account. Perhaps the most important aspect to consider is the location of the business entity because this has a large bearing on the company's plans and will highly determine its success and even survival…
Author : dpouros
Business so Foreign
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Business so Foreign"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Multinational Business: Foreign Direct Investment
Multinational Business: Foreign Direct Investment (FDI) Introduction Globalization refers to the integration of world economies through the reduction of barriers to the movement of trade, capital, technology, and people. International business or cross cultural business has been increased a lot in recent times as a result of globalization, liberalization and privatization policies implemented in many countries.
9 pages (2250 words) Essay
Establishing a New Business Venture in a Foreign Country
Establishing a new business venture in a foreign country is not an easy task since there are several challenges that are likely to be encountered. For instance, companies from emerging markets can face various challenges in their bid to establish operations in developed countries.
8 pages (2000 words) Essay
Foreign Bonds
It also enumerates the different risks associated with capitalizing in foreign bonds along with proposed strategies to minimize possibility of loss. Furthermore, are quotes and theories related to foreign bonds derived from a number of references both online and offline.
4 pages (1000 words) Essay
Should foreign governments be in the International Airline Business
Some people who are gaining financially from the business are undoubtedly supporting the step but some others are opposing it outright. In this paper we shall discuss whether the foreign governments should be allowed in the international airlines business or not and the reasons behind it.
3 pages (750 words) Essay
Foreign Policy
Therefore, freedom can influence the American policies, by enabling the country to intervene in other countries where freedom of the people is in jeopardy. This often leads to US-led military action against dictatorial governments across the world, if diplomacy fails to guarantee the masses of their freedom.
5 pages (1250 words) Essay
Doing Business in a Foreign Country
This consideration means that the organizational management will have to understand the legal, political, economic and cultural environment for the country upon which they focus. Doing business in Brazil means investing in a country that has many opportunities to all the investors as but also, there are challenges that may undermine establishment of operations.
4 pages (1000 words) Essay
International Business - Foreign Currency
For example, if the FC appreciates before the liability is settled, the company has to pay more dollars to purchase the FC needed to settle this liability. As a result, the company will experience a foreign exchange loss. Conversely, a company with a liability position in a weakening FC will experience a foreign exchange gain between the date the liability is incurred and its settlement.
10 pages (2500 words) Essay
Foreign Bonds
Furthermore, are quotes and theories related to foreign bonds derived from a number of references both online and offline. “Foreign bonds are a debt security
4 pages (1000 words) Essay
Foreign policy
es for a certain group or person and the establishment of enabling environment; or the lack of lived situations of coercion, for example political coercion in the United States society. Whereas political liberty is usually misunderstood to mean the liberty from irrational
5 pages (1250 words) Essay
International Business: Foreign Exchange
However, the high level of debt that the United States government represents has discouraged many nations around the globe from the viewing the United States
5 pages (1250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Business so Foreign for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us