Hospitality Management

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).