INT 220 Business Brief Template (1)

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Southern New Hampshire University *

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210

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Computer Science

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Apr 29, 2024

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INT 220 Business Brief Template Course Project Directions (This section can be removed prior to submitting this as your final project in Module Seven): Complete this template by replacing the bracketed text with the relevant information. Use evidence from course and outside resources to support your explanations. Be sure to use complete sentences to address each section of the template. You will be working on this template throughout the course, progressing toward the submission of the completed template as your final project in Module Seven. For Milestone One, you will complete Section One of the template; for Milestone Two, you will complete Section Two of the template; and in Modules Six and Seven, you will work to incorporate any feedback received on your prior milestone submissions, as well as work to complete Section Three of the template, before submitting the finalized template for your final project submission. Section One: Drivers for Global Entry Country Selection China Purpose of Global Expansion The purpose of Global Expansion is to increase the growth of a business. Global expansion makes it easier for local businesses to have foreign goods in stock due to importation. Business Impacts of Global Business Global Business can have its advantages and disadvantages. In my opinion Global business is the best thing a business can do for their growth. Global business adds more variety for customers and allows customers to have the choice of buying foreign goods that wouldn’t be found locally. Not only are customers affected in a positive way, but global business can be an advantage for workers as well. Societal Impacts of Global Business Global Business has been very beneficial to society. For the people looking to travel or that just simply want to leave the country they’re residing in, they can make money elsewhere. For example, with a work visa; non-U.S. citizens will be able to come to the U.S. and work without having the to worry about staying in their birthplace to work. Cultural Considerations for Global Business It is very important to research the culture of the specific country you will be marketing to. If a person doesn’t research the culture of the global market, there is a higher chance that you can disrespect or make someone uncomfortable by getting something in their misunderstood.
Section Two: Market Profile Cultural Profile Usually, cultural profile is a set of characteristics that a company and its employees must be able to follow to ensure a comfortable working environment. China’s culture usually has a deep respect for hierarchy and has a strong sense of family. People in China usually prefer to stay comfortable in their culture and are very traditional people. For a global business, it is important to understand the cultural profile of other businesses and organizations in many parts of the world. Category United States China Commonly Spoken Languages English, Spanish Chinese Commonly Practiced Religions Christianity, Catholicism Buddhism, Taoism, and Islam Power Distance Index (PDI) Low score of 40 Score of 80 Individualism Versus Collectivism (IDV) 91 20 Masculinity Versus Femininity (MAS) 62 66 Uncertainty Avoidance Index (UAI) 46 30 Long-Term Orientation Versus Short-Term Normative Orientation (LTO) 26 87 Indulgence Versus Restraint (IVR) 68 24 Political and Economic Profile China believes in collectivism whereas the US market focuses on individualism. Their governmental structure is very different as the Chinese government believes in Karl Marx’s communism to form a strong central government where people need to sacrifice their benefits for the good of the public. On the other hand, the US government is structured to support the individualism concept where it is believed that personal democracy is a necessity of the country where individuals need to have their basic rights and democracy. Category United States China Political System Federal Republic and Presidential System Socialist State, One-Party state, Communist State, Unitary State, Republic Current Leaders Joe Biden XI Jinping Economic Classification Mixed Economy Upper middle-income nation Economic Blocs Impacting Trade WTO Free trade agreement Regional and Comprehensive Economic Partnership,
Category United States China Gross Domestic Product 20.94 trillion 14.72 trillion Purchasing Power Parity 1 LCU per international dollars 4.2 LCU per international dollars Gross Domestic Product Per Capita 63,543.58 USD 10,500.40 USD Legal and Regulatory Profile There are trade restrictions in both countries on certain goods and services. China imposes tariffs and other trade barriers on many imported goods, while the United States has various trade agreements with countries that reduce or eliminate tariffs. Several sanctions have also been imposed on China for violating trade agreements and intellectual property rights in recent years. There are different legal procedures for conducting commercial transactions in the two markets. A court case is governed by common law, which is interpreted by judges. Chinese civil law is governed by government statutes and regulations. Foreign companies often find it difficult to seek legal recourse in Chinese courts because they prioritize social stability over individual rights. These are some overall differences between the legal profile of the two markets. Section Three: Market Considerations Monetary Considerations Economic activities are influenced by a nation's monetary unit. These activities would be exchanging rates, currency, and exchange-rate management. When an organization decides to expand into a new market, they have a significant impact on its decision-making ability. The country I have chosen to research along with the U.S.A. is China. Consequently, if an organization based in the USA is considering expanding operations into China, it must consider monetary factors like the current exchange rate. The organization would need to understand the current currency exchange rate between the US Dollar (USD) and the Chinese Yuan Renminbi (CNY). Category The U.S. Dollar China Exchange Rate 1 dollar=7.16528 CNY 1 Chinese yuan= .14 us Management and Logistics Considerations To manage human resources efficiently in China, it is imperative that you understand the local culture, comply with labor laws, communicate effectively, develop talent, and build a diverse workforce. This not only creates a successful business but allows employees to feel comfortable. A successful work environment is created by addressing these considerations and supporting the objectives and goals of the company. Mode of Entry Considerations Some Traditional Mode of Entry considerations for China and or any foreign country are foreign exporting, licensing, franchising, joint venture, and wholly-owned subsidiary.
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