Asia Pacific Economic essays

Asia Pacific Economic essays The purpose of this report is to analyze the business process in Asia by planning a business venture in China. The report will present and apply knowledge in terms of the strategic business planning and development process. With nearly 1.3 billion people, the Peoples Republic of China (PRC) is the worlds largest country and the worlds fastest-growing economy. Since its opening to the outside world in 1978 China has begun building a modern, internationally oriented industrial economy based on imports of technology and export-oriented production (Genzberger A. C, 1995, P1). Chinas political, economic and investment environment are changing, albeit gradually, and it has a growing core of forward-looking technocrats committed to economic reform. 2.1 What analysis would you want to undertake before actually considering market entry into China. Australia is Chinas thirteenth largest source of utilized FDI (foreign direct investment), with 2500 direct investment projects in a wide range of fields (China Daily, 4 Jan 1997). Evidences show that sixty per cent of Australian firms were interested in China, citing the huge potential of the market, low labour costs and Australias economic interests being largely in East Asia. Although there were a lot of barriers during investment process, for example, a complex and often conflicting system of administrative controls regulates access by foreign investors to Chinas market, the limited availability of foreign exchange, inadequate protection for intellectual property, barriers to market access and production controls, treatment hat is unequal when compared with that of domestic companies, and the lack of an adequate mechanism for resolving disputes (Genzberger A. C, 1995, P43), the number of Australian cumulative investment in China increased to around A$1 billion, with realized ou tlays averaging over A$200 million per year recently- mostly in manufact...