The Reasons Why Foreign Companies Are Moving Essay

The Reasons Why Foreign Companies Are Moving Essay

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We have seen since early 1980’s in the 2000s companies from all over the world have been investing trillions of dollars in China market. Recently we saw this demand nearly double with the last few years. Large numbers of corporations are leaving their home country and opening headquarters abroad in China. These companies include many types of industries but mainly, Software, Mining and Cosmetics industry, many big names such as Google, Microsoft and Apple also have their offices in China. Pepsi and Coca – Cola have also joined in on some of the profit. The question that is on everyone’s mind what are the reasons why foreign companies are moving to China. Thought this paper I am going to speak on the positive and negative effects we see from companies moving into such a demanding market through the eyes of Pepsi and Coca-Cola.

Caleb Bradham of New Bern, North Carolina was a pharmacist. Like many pharmacists at the turn of the century he had a soda fountain in his drugstore, where he served his customers refreshing drinks that he created himself. In 1898 after he bought the trade name "Pep Cola" for $100 from a competitor from Newark, New Jersey that had gone broke. After seventeen years of success, Caleb Bradham lost Pepsi Cola. He had gambled on the fluctuations of sugar prices during World War I, believing that sugar prices would continue to rise but they fell instead, leaving Caleb Bradham with an overpriced sugar inventory. Pepsi Cola went bankrupt in 1923 .In 1931, Pepsi Cola was bought by the Loft Candy Company Loft president, Charles G. Guth, who reformulated the popular soft drink, tinkering with the recipe. Guth struggled to make a success of Pepsi and even offered to sell Pepsi to the Coca-Cola company, who refused to...

... middle of paper ...

... are shunning diet colas. Diet Pepsi saw sales volumes fall below 5.2% in the U.S. last year, according to the industry tracker Beverage Digest, while U.S. volumes of the market 's leading diet cola, Diet Coke, plunged 6.6% last year. The top two sweeteners are sodium cyclamate which are popularly found in China have been banned in the U.S. The more popular name it was known as Sweet 'N Low. Both Coke and Pepsi have both been trying to solve the diet sweetener problem for years.

Throughout this paper, we have seen that companies such as Pepsi and Coco- Cola have transitioned to China because of their booming demand in foreign investment. We took a further look into the history of both corporations, compared their profit margins by country, determined which country had the best and worst trade regulations rules and saw what the future holds for both corporations.

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