International Business Reports 2022

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Authors note

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INTERNATIONAL BUSINESS
Introductory information and Executive Summary
Fingers is a fast-food manufacturing company that produces French fries. This company has
the target to expand its business in a foreign country. To fulfil that aim primary market
research has been done. The study suggests the name of Germany and China as the two most
competent country for the product launch. The final country selected for the venture in China.
This report elaborates the factors associated with the business environment in China and
analyses it as the host country for Fingers production. China has the largest population in the
world and a continuously growing economy. For a long time, this country was close in itself
and did not have any outer influences. Globalization and employment have changed the
standard of living in this country. People are attempting western food habits in China, as they
are time effective and tasty. The consideration of China for this business expansion is quite
apt in this aspect. The availability of the resources is also high in this country. There are other
aspects a swell that needs to be analyzed before finalizing China as the host country. The
owner of Fingers hailed from Canada; therefore, the culture difference needs to be assessed.
There are political and economic factors affecting the context of business in China. All these
play a vital role in the introduction of new business in China. The discussion in this report
addresses all the essential part of the business set up and is concluded with recommendations
derived from the discussion.

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Table of Contents
The project objective and scope of the project, company information, products, and
background.................................................................................................................................3
Host country information...........................................................................................................4
Analysis of culture and society of the host country and its impact............................................5
Analysis of the political system of the host country..................................................................8
Analysis of legal systems...........................................................................................................9
Analysis of the economic system.............................................................................................10
Analysis of government and business relations.......................................................................13
Opportunities for foreign direct investment.............................................................................14
China’s integration into regional unions..................................................................................17
Financial system and management of foreign exchange..........................................................18
Political risks............................................................................................................................19
Economic risks.........................................................................................................................20
Discussion and findings of the suitability................................................................................22
Recommendations....................................................................................................................26
References................................................................................................................................28
Appendices...............................................................................................................................29

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INTERNATIONAL BUSINESS
The project objective and scope of the project, company information,
products, and background
The objective of the project is to develop a final report for the project of establishing
an enterprise. The proposal for this project has suggested the plan for founding an
organization named as Fingers and the product would be French fries. This report will
elaborate on various factors that could affect the business scenario in the selected country and
how the issues could be resolved. Establishing a new company is a challenging task, and it
involves various analysis criteria. This project proposal has been submitted earlier, and
business analysis has been done for the selection of the market. Two countries were selected,
and after comparing various factors, one country needed to be finalised. The analysis showed
China would be more profitable and apt for Fingers.
This report will discuss and analyze the markets the host country, China and mark the
suitability of this country for starting the business. Social, economic, political, financial, laws
and regulation and risks of the market are evaluated in this report. This evaluation would lead
to the recommendation at the end of this report. Market research is an integral part of any
business endeavour as it would provide the base and competitive advantage. The scope of this
report is, therefore, vast as it has taken all these aspects of marketing for the new company
Fingers in China.
Fingers is a fast-food company that would primarily have French fries as its product.
The demand for fast food has a continuous upward movement. With the varying option of
fast food, people are actually showing an inclination towards these readymade and tasty
options. The primary aim of this product would be to provide the customers with more than
one flavour of these French fries. The variations in the flavour and taste are not available in
the market when it comes to this snack. Fingers would make French fries that have sweet,

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spicy and salty flavour options. Later the brand may improve in their taste and fast food
variations in China. The outlets for Fingers would be opened in prime locations of the
country.
Host country information
The host country, selected for this venture is China or the People’s Republic of China
(PRC). This is an East Asian country which has the tag of the most populous country in the
world. The population of China is almost 1.4 billion (cia.gov, 2019). This is the third biggest
country as per its coverage area. This country is the largest among all the Asian countries,
and the land of China occupies almost one-fourteenth of the total land area of Earth.
Therefore, this country has the largest market for any business endeavour. There are 33
administrative units in China that are controlled by the central government. These units
consist of two special administrative regions- Macau and Hong Kong, five autonomous
regions, 22 provinces and four municipalities- Shanghai, Chongqing, Beijing and Tianjin.
Beijing is the capital of the country. China has been consistent with its rich cultural practices.
Beijing is the centre of this country's economic, cultural and communications. On the other
hand, Shanghai is famous for its industries and Hong Kong is the centre of commerce and
port (cia.gov, 2019).
The topography of China is full of diversity and complex structure. The country has
one of the lowest and highest places on earth (Xia, 2014).). The diverse geographical lands of
this province have vast and low coast areas as well as high mountain areas. There are
contracts in the climate range as well. This diversity in climate condition and temperature has
been the home for a vast range of flora and fauna. This country is the home for some of the
exotic and rare animals in the world.

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The most important part that makes this country different from another part of the
world is its vast population. It is stated that about one-fifth of total humanity is of Chinese
nationality. China is said to be a homogenous country with respect to its ethnicity. But this
country has a wide range of variety among the indigenous people. There is a linguistic and
cultural difference between the Han people of this province. The density of people in this
country is evenly distributed, but at the same time, vast areas of China are either sparsely
populated or completely inhibited (cia.gov, 2019).
China has flourished as an economic and cultural country right from its earliest days.
In spite of the frequent political upheavals, this country has managed to gain its economic and
cultural advancement. This country is resistant to the influence of any outside cultures. The
only exception in this is the introduction of Buddhism in China from India. Even the cultures
that have entered the country were absorbed by the strong Han culture fabric. But this
isolation of this country from another part of the world has made it ill-prepared for the
technological challenge. China has suffered several challenges for its incompetence and
helplessness in front of the foreign onslaught at the beginning of the 20th century (Xia,
2014).). It is also the fact that the revolution of that century reshaped Chinese society and
economy. This country has emerged as an influential power since that time. The foreign
investments have increased in this country that has given stability to the country's economy is
in an association with the GNP of China. Internal, as well as external business units, has
contributed to the development of this country. There are some challenges like lack of
infrastructure and natural resources that cast a few obstacles in the industrial development of
this country. But again the huge population and vast land availability with low cost
workforces make the country a popular platform for the foreign country investors.

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INTERNATIONAL BUSINESS
Analysis of culture and society of the host country and its impact
Chinese culture is based on the ethical roots of the country. This country is not open
to changes that are influenced by foreign forces. People in this country has still managed to
sustain most of its age-old cultural traditions intact with their life (Moise, 2013). But
globalisation has influenced the daily lives and society of China. While learning of the host
country, China, our product Fingers have to understand these parameters of market demand.
The need and changes in the trends of the market could be evaluated through the
understanding of one country's cultural and social positions. The social factors that could
impact the market of Fingers in China are education, employment, lifestyle standards and
food habits.
The education level of this country has been increased in the past few years. The table
below shows the comparison in education rate for 2010 and 2015.
Year Primary
Schools
(million)
Junior High
Schools
(million)
Senior High
Schools
(million)
Colleges and
Universities (million)
2010 358.8 519.7 188 119.6
2015 334.5 489.4 210 170.9
Table 1: Number of educated people of China in 2010 and 2015
(Source: http://www.chinadaily.com.cn/china/2016-04/21/content_24714296.htm)
The improvement in education rate is the reason for increased employment in China.
The lifestyle has changed due to the busy and scheduled job lives of Chinese people. These
hectic lifestyles have increased the demand for fast food and packaged readymade foods.
Introduction of international business and corporate industry has changed the daily habits of

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people living in China. The fast-food chains of some international brands have already gained
popularity in this country because of the same reason. The urban people have so many food
options, and they are interested in trying some new tastes all the time (Cheremukhin et al.
2015). This is where Fingers could gain popularity because of its new look and flavours.
Other important social factors are women employments rate increase. The lack of time for
working women is marked as one of the influential factors in increasing the demand of fast
foods.
Figure 1: Surge of women employees in China Workforce
(Source: https://www150.statcan.gc.ca/n1/pub/11-630-x/11-630-x2015009-eng.htm)
As could be seen from the above graph, the number of women employees in the
workplaces have immensely increased. This leads to the fact that they have less time for the
long process of cooking and searching for an option that is tasty and time friendly at the same