Despite the recent setbacks for its image, the United States has by far the largest influence in the region. During 2007, China supplied over two-thirds of computers exported to the U. S. from the six major trading nations. In fact, China contributed to $23. 2 billion (76. 7% ) of U. S. computer imports. It should not, however, take its influence in the region for granted, if China is to continue to position itself as an Asia Pacific power.
Its influence in the region cannot be maintained by economic and military supremacy alone. East Asia is going through historic geopolitical changes due to the rise of China. Political interest in the vision of an East Asian community suggests that the region is in search of a new order to accommodate China’s growing power and influence and to maintain regional peace and stability. In no way is this an easy enterprise. Asian countries tend to suffer from domestic political difficulties in economic liberalization, large gaps in developmental stages among regional economies, and mutual distrust and historical antagonism between Japan and China.
Despite these difficulties, however, there is a growing consensus that, eventually, East Asian countries will come up with some form of a regional community. Regional alliances and economic integration East Asian economic integration will help reduce regional tension and lighten America's security burden in the region. Economic integration will engage regional powers in stable regional interdependence where one's prosperity is in the interest of others, and make them more predictable and reliable to each other.
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Successful development of poorer countries in Asia through integration in regional economic dynamism will help political stability and reduce the possibility that these countries will become hotbeds of terrorism. Regional: Physical environment and its effect on trade Asia’s physical environment has a big affect on trade in a couple of ways. First the weather in Asia as a region is very unpredictable. Having unpredictable weather or catastrophic events can have a major impact on a business because companies could lose physical property, manufacturing time, or products which would result in financial loss.
The air quality within the cities of Asia is poor and is known for creating health issues among the individuals living in that area. Production can be affected if employees are out sick and away from their jobs. Air pollution and an unclean environment only somewhat effects trade; however an organization can easily open up a factory there as well with cheap labor and weak environmental laws. Many foreign companies have placed their factories in China with a great deal of success because of the ability to hire cheap labor and to run their factories without many regulations. Regional Political Stability
The political stability of China seems precarious at best. “While the US relies on free markets and free societies as the basis for contemporary socioeconomic and political movement, China focuses on stability as the essence of its foreign policy” (Cheow, 2006). China has often been fueled by propaganda but in recent years, China’s top political leaders have begun to stress how important stability is with all people throughout their country. This includes all people from all backgrounds. China’s political stability has helped to fuel economic growth throughout the country. Regional Social, Health, and Environmental Conditions Chinese workers remain among the lowest paid in the world. The average total labor compensation for a Chinese manufacturing worker is 57 cents per hour, with many making far less than that, benefits included” (McCormack, 2006). This translates to approximately $104 per month; this makes living any type of decent life as we know it utterly impossibly. Many low-paid Chinese employees will live in squalor and with many people to small single bedroom quarters. In China there is no shortage of workers; China has a large unemployment rate of 25% (McCormack, 2006) leaving an abundance of low arning employees for many years to come.
Regional Terrorism Threats
China does have an internal terrorist threat. Not only are there Muslim Separatists’ in the region, but also the Uygur separatist groups and the East Turkistan Islamic Movement, both of which have “been reputed to have trained in Afghanistan to fight along with the Taliban and al Qaeda” (chinaguide,com, 2009). It is important to understand China has recognized this issue and “to fight terrorism, the Chinese government will enhance international cooperation and strengthen legislation and law enforcement on anti-terrorism” (Xinhua News Agency, 2005).
Regional: Economic conditions
The economic conditions of Asia differ from which country you are in. This can affect trade in many ways that are positive and negative. The positives that come from a poor economy are the ability to hire cheap labor and to spend less on manufacturing the product. The company also comes into the region offering jobs to a society that truly needs money and the ability to make a living. Another advantage is the ability to export products all over the world from a very productive location. Negative aspects of a poor economy are that the product will not sell well in a poor region.
Theft and destruction to an organization are another hazard that could occur when located in a poor region. The economic situations vary; some places in Asia are wealthy while some are very poor. Due to this fact, it is important to tailor an organizations marketing strategy to those each specific area. Regional: Finance options available When an organization decides to open their company in Asia, it is imperative to finance through a financial company that is well established. Team B’s company should finance their global organization through a successful, well established lender.
There are also many successful companies in Asia that could possibly help finance and invest in Team B’s organization. Creating a strong business partner is extremely important in creating a successful and long-lasting organization. Country Political stability Since 1978 China has gone through a series of rapid changes within their government system; these political changes p from human rights practices to new labor laws. These new laws have allowed China to create a solid and stable foundation for the government and to operate on a daily basis. At the current time, China is politically stable.
This can be seen in the growth of China as well as the impact that China is having on the global market. Country Economic Conditions In 1987, China constructed a three step developmental strategy that would increase the overall economic conditions in China. These three developmental strategies are: to double the 1980 GNP and ensure that the people have enough food and clothing, to quadruple the 1980 GNP by the end of the 20th century, and to increase per-capita GNP to the level of the medium-developed countries by the year 2050. Step one ensures that the Chinese level of poverty will not increase.
The second step has already been achieved in 1995. Finally, the third and final step, explains that by increasing the GNP, Chinese citizens will be financially stable and be equipped with modern technology. The current economic condition is better than expected with new heavy and light industry, agricultural and energy expansion. The Chinese economy continues to grow at a fast pace. Country Financial Options Building and manufacturing plastic laptop housing in China offers a couple of financial options for the company to expand. The first financial option available is low to no interest loans offered by the Chinese government.
This financial option is an incentive offered by China to attract new business into their country. Another financial option is building capital through investors. This option would create a group of shareholders that have intvested the capital needed to build a new facility with potential return on their investment. Country Social, Health, and Environmental Conditions The current social, health and environmental conditions are not as good as other countries but the Chinese government is working on reforming these conditions throughout the nation.
The safety and working conditions are considered much lower and more dangerous than other parts of the world. A few of the steps that the Chinese government is currently working on are . “Enacting and improving environment and health laws and regulations. ” (China. org. cn. , 2009). “Build a supervision network on environment and health” (China. org. cn. , 2009). “Set up state environment and health information share and service system” (China. org. cn. , 2009).
Even though China’s current social, health, and environmental conditions are not the most favorable, the Chinese government is continually working on ways to improve the quality of the environment and working conditions throughout the nation. Cultural Considerations One of the first things that should be considered is that China’s history ps more than 5,000 years. In years past China has experienced times of feudalism, communism, invasion, but now they have a fledgling market economy. When considering doing business in China, one of the biggest things to consider is the different arrays of Chinese business culture and etiquette.
Chinese business culture and etiquette includes maintaining eye contact between the members of the business meeting. Without eye contact the perception of untrustworthiness will be portrayed. Another very important aspect of Chinese business etiquette is to address each Chinese counterpart with his or her title and last name; if they don’t have a title address them with Mr. or Madam. China’s current culture should be taken into consideration to illustrate respect towards their country and businesses (Winters, 2008).
Organization and Product Analysis
Team B will be developing an organization that intends to make plans for manufacturing laptop computer housing in China. Computer housing is the shell that protects the memory, processors, and drives that enable a computer to work. This organization would create and manufacture computer housing then sell them to computer companies like Dell, IBM, or HP who would then build and sell computers to consumers. Desktop computer housing sales have declined because there has been a decrease in desktop sales and an increase in laptop sales.
The market is also beginning to see sales of Notebooks or small wireless computers that’s main function is internet media and communication (Abbasi, 2009). As laptop sales and notebook sales increase there will be a continuous need for laptop housing.
Ultimately, as the demand for technology increases and adapts to an emerging Chinese society, active U. S. support for improving global and regional institutions, promoting Asian development and fostering Asian regional cooperation would enhance its influence in the region and elsewhere. With this perspective, the rise of China and the trend toward intra-regional economic integration in Asia are opportunities for both of our countries. Team B’s organization would benefit in many aspects by manufacturing laptop housing in China.
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