R.M. Williams: A Comparative Study of China and Europe Markets

This report provides a comparative analysis of the international markets of China and Europe, focusing on key environmental factors relevant to business operations, particularly for a company like R.M. Williams. It examines the economic environments of both regions, highlighting differences in GDP, manufacturing capabilities, and overall economic position. The report also delves into the financial environments, comparing operation costs, product quality considerations, and the structure of financial markets. A significant portion is dedicated to the legal environments, noting variations in libertarianism, uncertainty avoidance, and the potentiality of legality. Furthermore, the political and cultural landscapes are explored, contrasting the Chinese Communist Party's influence with Europe's diverse political structures and cultural roots. The report concludes by assessing which market, China or Europe, holds greater potential for immediate development, suggesting that China's rapidly growing consumer market and its position in the global financial system make it an attractive option for companies like R.M. Williams seeking international expansion. This analysis considers factors such as trade relations, legal frameworks, and cultural nuances to provide a comprehensive overview of the business environments in both regions.

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Comparison and contrast between two International Market

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Table of Contents
Introduction .....................................................................................................................................2
External Environments....................................................................................................................2
Economic Environment................................................................................................................2
The Economic Environment of China......................................................................................2
The Economic environment of Europe....................................................................................3
The Differences in Economic environment of China and Europe...........................................4
Similarities between Economic environment of China and Europe.........................................4
Financial Environment.................................................................................................................5
Financial Environment of China..............................................................................................5
Financial Environment of Europe............................................................................................5
The Differences of Financial Environment of China and Europe............................................7
Similarities between Europe and China Financial Environment..............................................8
Legal Environment.......................................................................................................................8
Legal environment of China.....................................................................................................8
Legal environment of Europe...................................................................................................8
The Difference in the Legal Environment of China and Europe.............................................9
Similarities between Europe and China Market in terms of Legality......................................9
Political and Cultural Environment of China and Europe...........................................................9
Political and Cultural Environment of China...........................................................................9
Political and Cultural environment of Europe..........................................................................9
The Difference in the political and cultural environment of China and Europe....................12
Similarities in the Political and Cultural environment of China and Europe.........................12
Which market has the greatest potential for immediate development?.........................................13
Conclusion.....................................................................................................................................13

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References......................................................................................................................................15
Introduction
Every country holds its own business environment, which consists of the economic,
financial, legal, political, cultural and social environment. Business completed when it provides
better options for future sustainability, to manage the business in a foreign country there is a
need to deal with many factors like cultural and environmental differences, etc. (Fernando,
2011).
The Business environment is the total of the external and internal environment. Every
business needs significant resources. Proper market conditions need to be verified when the
business is done at a big level. Business at the worldwide level also provides better opportunities
rather than at a lower level (Pailwar, 2014).
Reginald Murray Williams established R.M. Williams in 1932 in Australia. This is an
iconic brand of Australia. R.M. was a person of different nature, who liked to master in all the
world could teach him. This brand provides the best quality of footwear, clothing, and
accessories. R.M. Williams introduces the world how to wear a dress in style. R.M. Williams
worked with many companies. This brand also knows for quality and style.
External Environments
International Markets creates many options for the world to feel Smaller and smaller in
terms of business. Further, it creates many options to expand businesses around the world. It also
helps to create many advanced options in front of the world. One of the surveys which were
taken by the World Trade Organization according to the size of the international market
increased 33 times between 1951 and 2010 (Guy, 2009).
Economic Environment
The Economy of every country plays a vital role in the success of every business at a
grand level. The estimation of The People’s Republic of China with an estimated US$19.51
trillion, the European Union with US$19.18 trillion (CIA, 2016).

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The Economic Environment of China
China position in the international market has grown undoubtedly over the past decades.
Beijing has become an avoidable partner in any matters of global concern. China holds an
impressive economic growth rate. Beijing holds second place for the highest military expenditure
(Managi & Kaneko, 2009).
The Economic environment of Europe
Europe holds many globe dominant businesses but Europe’s performance in evolving
more of them is not enough. Europe needs to support its companies in term of creating new
business opportunities and upgrading their labour skills (Doing Business in Europe, 2018).
(Pew Research Centre, 2019)
This source indicates the top economy of the world which shows that China holds a better
economy than Europe and rather than any other countries in this world as well.

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2015 2016 2017
-300
-200
-100
0
100
200
300
400
500
Trade In Goods
Eu Imports Eu Exports Balance (All amount in
Billions)
(European Commission, 2018)
The Differences in Economic environment of China and Europe
Point of Differences
(Based on Economy)
Europe China
GDP $17.28 $12.24
Economy Place
(Purchasing Power
Parity) (Rank In the
world)
II I
Manufacturing
Economy Position
(Rank In the World)
IV I
Similarities between Economic environment of China and Europe
The connection of global Merchandise between China and Europe were started in 1975.
They hold good relations in terms of business. Europe is the biggest business partner in China
and China is the second largest trading partner in Europe.

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(Morrison , 2016)
Financial Environment
Financial Market is a series where successful coordination goes to raise the big amount of
cash to expand. Financial Markets generates an open and managed structure. This is passed by
the stock and bond market (Bilgin, Danis, Demir, & Can, 2016).
Financial Environment of China
Financial Market of China likes the most developed countries business which includes
the Stock Exchange, Bank Loans, Bonds and some worldwide equity (Fung & Zang, 2015).
Financial Environment of Europe
The Financial Market of Europe is too strongly bank based. A vital financial system is
key to the good functioning of the economy. It is compulsory to make financial market favorable
in terms of growth and implementation (Somers, 2010).

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(Demertzis, Merler, & Wolff, 2017)
Financial Market of China and Europe indicates as Europe holds a good number
compared to China. Which shows the good impact of financial Market.

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(Kahn, 2015)
This graph shows the good amount of valuations of private companies in Europe and
China.
The Differences of Financial Environment of China and Europe
Point of Differences
(Based on Financial
Factors)
Europe China
Operation Europe looks more on
class and technology
China operates
differently when it
comes to
Manufacturing
Cost Europe Financial
Market does not look
more at the cost-
cutting of Products
China Financial
Market looks more at
the cost-cutting of the
Products
Product Quality European Financial
Market look more on
the quality of its
Product
China Financial
Market does not look
more on the quality of
their product

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Similarities between Europe and China Financial Environment
Analysis of many data shows that China and Europe holds a good degree of export
similarity. They both hold a similar degree of industrial structure.
Legal Environment
Legal business is very important in terms of business. Which showcase the legal structure
of the organization. Any organization who wants to grow and developed their business need to
set their legal rules and criteria’s (Beatty & Samuelson, 2010).
Business law covers all the international rules of law in business. It also includes
maximum rules of the latest development in all zone of business law across the world. There are
certain rules and regulations for business at a global level. Ignorance of the Act is not a valid
defense to avoid a compliance violation.
Legal environment of China
China’s legal system is primarily based on the model of Civil Law. Constitution of China
is the highest law within China (Trevaskes, Nesossi, Sapio, & Biddulph, 2019).
China e–Commerce Law and cross – border e-Commerce regulations
This is recently updated rule which was implemented on January 1. This will help to
improve the regulation of its successful e-commerce market and extend valid defense for buyers
and brand owners (Xie, 2015).
Legal environment of Europe
Law of Europe based on a codified set of laws. Legal Market in Europe provides the best
quality and quantity summary. Legal Market of Europe also follows the strictest rules in terms of
legal environments.

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Law of Competition between Businesses in Europe
According to this rule, any business holder can file a case for a claim of competition if a
business holder can prove that their business has overpaid and suffered a loss of revenue (Harris,
Oboyle, Bates, & Buckley, 2014).
The Difference in the Legal Environment of China and Europe
Point of Differences
(Based on Legal
Environments)
Europe China
Libertarianism Legal environment of
Europe is more
libertarianism
Legal environment of
China is lesser
libertarianism
Uncertainty
Avoidance
There is more
uncertainty avoidance
in the Legal
environment of
Europe
There is lesser
uncertainty in the
legal environment of
China
Potentiality of
Legality
The potentiality of the
legality is lesser in
Europe
The potentiality of the
legality is more in
China
Similarities between Europe and China Market in terms of Legality
There are more similarities in terms of masculinity of China and Europe legal Market.
There is also more similarities in terms of long term orientation of legal market of both countries.
Political and Cultural Environment of China and Europe
Political and Cultural Environment of China
There is only one Political Party in the country is CCP (Chinese Communist Party).
There are eight other register parties and they are all controlled by CCP. The Culture of China is
in elite form. It shows the official literature, Poem, Song, Drama, etc. (Kent, Ellis, & Xu, 2018).
Political and Cultural environment of Europe
The Political and Cultural environment of Europe includes the policies which should be
followed under the culture of Europe. The Culture of Europe is rooted in the art, architecture,
film that originated from the continent of Europe (Bromilow, 2018).

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(Douglas, 2016)
The Political environment of China likes to transition to a market economy and the
political environment of Europe indicates expansion and integration.
Culture of China

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(Leornard, 2016)
In Chinese culture of Family is appreciated very high. This environment has a direct
impact on the business.
Culture of Europe