Hospitality Management

According to the above 12c analysis, it is identified that the currency of China is growing popularity in the global trade amid the push from their government. It is being tried to replace the dollar as the global currency with Renminbi.

Running head: HOSPITALITY MANAGEMENT
Hospitality management
Name of the student
Name of the university
Author note

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12C analysis
According to the above 12c analysis, it is identified that the currency of China is growing
popularity in the global trade amid the push from their government. It is being tried to replace the
dollar as the global currency with Renminbi. On the other hand, the Canadian dollar is more
stagnant and constant with its valuation in the higher side. As per the population density, China
is well ahead of Canada due to being the largest country in the world in terms of population. This
will help Aspersions in having larger target segments in China over Canada. The belt and road
initiatives taken by China will also help in having direct contact between the European countries
and China (Helwig et al. 2014). This will ensure the enhancement of the connectivity between
the two regions. However, on the other hand, contractual problem will be more in China than in
Canada due to the reason that communist political regime in China is having more complex
restrictions over the open market economy of Canada. The consumption rate in China is
increasing in line with the increase in their national economy. Thus, the long term potentiality in
doing business in China will be more than in Canada. It is also forecasted that China will become
the economic super power in the coming years, which states that the purchasing and
consumption power of the Chinese population will be more as compared to Canada (Bathelt and
Li 2013). However, it is also important to identify the preferences of the Chinese population
towards casinos as they are popular in Canada. If the cultural factors are not favorable, then it
will not be a viable option for Aspersions in doing business in the foreign country.
Political risks of China and Canada
China is having more political risks due to their issues with the western economies
especially with the United States. In the recent time, the two countries are indulging in trade

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wars, which are causing negative implications on the business entities. Aspersions may also have
to face the economic sanctions in doing business in China from the major western economies. On
the other hand, Canada is a more business friendly country in terms of political factors
(Ferdinand 2016). They are also having positive relationships with all the western economies,
which is helping in creating more business opportunities. Thus political ideologies being
followed in China is also creating issues with the other major economies. Chinese communist
government is often accused for undue interference in the business decisions of the
organizations. This is reason of exit of Google from the country. Thus, Aspersions will also face
more interference from the government in doing business in China (Cote 2014). This will create
complexities in the decision making process along with lack of freedom in the business
operations. On the other hand, Canada is following pro business and capitalistic political system
that is beneficial for the enhancement of the business. Thus, the political risks are more in China
than in Canada.
Economic risks of China and Canada
China is one of the leading countries in terms of economic growth in the world and thus
the business opportunities are also more than Canada. The economic growth of Canada is stable
and not growing similar to that of China. The larger country size and huge population is
contributing in enhancing the economic growth for China, while economy of Canada is highly
depended on the immigration from other countries (Lin 2013). The level of competition in doing
business in China is also increasing with the entry of more global brands, while the intensity of
competition in Canada is low due to their limited market potentiality. Thus, it can be concluded
that Canada is having more risks in terms of economy compared to China. In addition, the
economical opportunities will also be more in China than it Canada (Chernis and Sekkel 2017).

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According to BERI index, Canada is ranked at 7th position in the world in terms of favorable
business environment, while China is standing at 49th position. This denotes the high differences
between the risks factors in both the countries. The average risk for doing business will be low in
Canada than in China.
Identification of market entry strategy
It is recommended that Canada should be selected as the host country of operation for
Aspersions due to their lower anticipated risk factors. One of the major recommended market
entry strategies is strategic alliance. This is due to the reason that with the help of strategic
alliance, Aspersions will be able to leverage on the competitiveness of the local partners in doing
business. Moreover, the risks and liabilities involved in foreign business operation will also be
reduced due to strategic alliances (Brouthers, Nakos and Dimitratos 2015). Aspersions will be
able to cover the Canadian market without directly investing in the market and leveraging on the
positive brand value of the partnered firm in Canada. However, initiation of the strategic alliance
market entry strategy will also reduce the controlling power of Aspersions in their foreign market
operations. Thus, it will be difficult to manage the operations according to their existing practices
and approaches.
It is also recommended that direct investment in the country will also be beneficial for
Aspersions in doing business in Canada. This is due to the reason that with the help of the
foreign direct investment, they will be able to gain the incentives and tax benefits provided by
the Canadian government. In addition, the customization option can also be initiated by
Aspersions with directly investing in the country. Thus, the design and approach of the casinos
will be different and will be in line to the local aspects of the target market. This will ensure

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more market penetration for Aspersions in the Canadian market. However, it should also be
noted that risk factor will be more for Aspersions in directly investing in the country and return
on investment will be depended on the external business factors.

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Reference
Bathelt, H. and Li, P.F., 2013. Global cluster networks—foreign direct investment flows from
Canada to China. Journal of Economic Geography, 14(1), pp.45-71.
Brouthers, K.D., Nakos, G. and Dimitratos, P., 2015. SME entrepreneurial orientation,
international performance, and the moderating role of strategic alliances. Entrepreneurship
Theory and Practice, 39(5), pp.1161-1187.
Chernis, T. and Sekkel, R., 2017. A dynamic factor model for nowcasting Canadian GDP
growth. Empirical Economics, 53(1), pp.217-234.
Côté, J.E., 2014. Towards a new political economy of youth. Journal of youth studies, 17(4),
pp.527-543.
Ferdinand, P., 2016. Westward ho—the China dream and ‘one belt, one road’: Chinese foreign
policy under Xi Jinping. International Affairs, 92(4), pp.941-957.
Helwig, C.C., To, S., Wang, Q., Liu, C. and Yang, S., 2014. Judgments and reasoning about
parental discipline involving induction and psychological control in China and Canada. Child
Development, 85(3), pp.1150-1167.
Lin, J.Y., 2013. Demystifying the Chinese economy. Australian Economic Review, 46(3),
pp.259-268.

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Appendix
China Canada
Currency Renminbi Canadian Dollar
Communication 375 people per sq. ft. 4 people per sq. ft.
Channels of distribution Have rail and road
connections with western
Asian countries. Belt and road
initiative
Having and road and rail
initiative with the United
States
Contractual problem Democratic country with fair
legal system
Communist country with
conservative system
Country Asian region. Bordered with
highly potential south Asian
countries
Bordered with the United
States
Caveats Regressive legal and political
system
Limited growth of population
Consumption Consumption rate is moderate High
Commitment Higher restrictions Lower restrictions
Culture Communist atheist Christians Catholics
Choices Competition is high Competition is high
Capacity to pay Capacity is growing Capacity is high
Concentration 34 administrative units 10 providences