Citibank was one of the first foreign firms to obtain licenses to conduct a limited range of commercial activities in China. Citibank's current global network is large enough to conduct business with several of the most powerful corporate businesses in the offshore market. In relation to technology and financial innovation, Citibank is known to be ahead of the curve' and perceived as a top market bank in the United States and internationally. Through the years, Citibank has won numerous awards for providing better corporate banking services than other local banks. Citibank's attempt to expand into China can be based on the previous accounting practices experience it had with this country.
This is leading to tremendous changes in the global economy. China has become the second largest foreign direct investment recipient country in the world and the largest recipient among developing countries. Since 1978 the foreign direct investment has flooded into the country. In 2002 china became the first country for a very long time to attract more foreign direct investment in one year then the United States (bringing in US$53.2 billion while US$52.7 billion flowed into the United States). Foreign direct investment has played a vital role in the transformation of the Chinese economy in China, with value contracted increasing from US$ 52.1 billion (1998) to US$ 115.1 billion (2003).
China has embarked on a rapid economic growth specifically in urban areas which has resulted on booming consumer market for high end good and services. People of China would account for 20% of global luxury goods for as early as 2015 which will be a huge $27 billion. By 2020, Chinas middle class is expected to burgeon to 45% of the population which would be nearly 700 million people. These reasons make China a very lucrative target market for luxury drink makers like ours. This well documented growth of disposable income amongst Chinese consumers puts forth a very advantageous space in the regional market as global beverage manufacture.
Introduction China is everywhere; it seems that vast amount of products have the label "made in China". Immersed in the overwhelming trend of globalization, China has already become the "world factory". Clothes are stitched in China, toys are made in China and electronic equipments are assembled in China. The world factory is manufacturing in a high speed to provide commodities worldwide with cheaper labor. China's rapid economic development over the past thirty years has become one of the economic wonders of the modern world (Guo & Zhang, 2010).
The purpose of this industry market analysis is to explore Alibaba.com, an internet-based company that provides platforms for consumer to business transactions. The e-commerce industry has become highly saturated however there are only a handful of leaders in the industry including Alibaba. Alibaba’s unique business model is designed to create an ecosystem within e-commerce. Thus, cutting operating costs and reaching a larger demographic. Despite its competition, Alibaba is the leading e-commerce company in China and is expected to continue to grow exponentially.
This foucs of China has created a large export market for US. With a population close to 1.3 billion and foreign exchange reserve estimated to be around $3.7 trillion China today is an enormous market for any business. Apart from being a lucrative export market for US manufacturers and other business, China also is one crucial importer to US market. This can be understood by the fact that China was the largest source of US imports in 2013, which is estimated to be $440 billion. Importance and position of China as a source of imported for US has grown significantly over past few years.
Today, the Chinese consumer is driving global growth and Chinese consumers spent $9 billion on luxury goods in 2010 (Insights, 2011). Nowadays the Chinese consumer is savvy and well aware about brands and although China is still an emerging economy but there is a lot of development within several sectors of economy. China ranks as the world‘s third largest medical device market in the world (Apco, 2010). Today, Chinese market for dental consumables is registering a boost that is unprecedented due to growi... ... middle of paper ... ...nd awareness amongst the consumers in China. Celebrity endorsements have hugely helped dental consumable products to create brand awareness in China which has further helped in building brand loyalty for such products (Freedonia, 2009).
Their economy has grown an astonishing 9-10% over the past thirty years; almost double of what it used to be decades ago. China is also the “world’s greatest manufacturer and its greatest market” (Rachman). The continuing growth of China's economy is a source of concern for not only the U.S. but surrounding nations as well. One could argue that the U.S. need not worry about China’s growth because of the spread of globalization and that western ideologies would influence China to turn to democracy. Yet China has still managed to “incorporate censorship and one party rule with continuing economic success” (Rachman) and remains a communist country.
Being bilingual in Chinese is beneficial to individuals. Unlike any other languages, being bilingual in Chinese will enable individuals to venture in businesses in China since Chinese businesses are looking for overseeing workers who will benefit their businesses through their foreign knowledge. In the overseas Chinese dominate the economies because of the massive export market by linking up with the U.S. companies. For an example analysts’ have estimated that China’s export gained 2.1 percent to 13.2 percent, with a median projection of 7 percent. The median estimate for the trade surplus was $21.2 billion.