Personal Financial Services in China Essay Example | Topics and Well Written Essays - 2250 words

Personal Financial Services in China - Essay Example Throughout the world, China is considered as a pioneer in all kinds of new technologies and modern scientific approaches to business. Thus, it has recorded a very high average growth rate of 10% for the last three decades (Zhu, 2012, p. 115). The economic structure is such that the country follows a socialist model in which unionization is supported and the people are provided with social benefits (Chao, 1986, p.245). The fair competition takes place where private and public enterprises work in harmony with one another and try to deliver an efficient allocation of the resources in the economy. The economy of China has the highest rate of urbanization and it is also the largest economy in the world. The country started the endeavor to industrialize the economy at the beginning of the 1950s. Before 1978, the growth rate of the economy was 3 % per annum which increased to 8% post-1978 period. There was a reversal in the pattern of accumulation of capital and the productivity growth of t he factors of production like labor and technology. The rate of labor participation grew very slowly during this period because the growth rate of population was very low (Schultz, 1953, p.136). The basic model that every business in the people’s republic of China followed was focused on investment. This strategy was taken only to achieve economies of scale and high rate of growth by the government of China (Naughton, 1995, p.45). However, it was not much of a success and led to many unfavorable consequences for the society.... Fair competition takes place where private and public enterprises work in harmony with one another and try to deliver efficient allocation of the resources in the economy. The economy of China has the highest rate of urbanisation and it is also the largest economy of the world. The country started the endeavour to industrialise the economy at the beginning of the 1950s. Before 1978, the growth rate of the economy was 3 % per annum which increased to 8% post 1978 period. There was a reversal in the pattern of accumulation of capital and the productivity growth of the factors of production like labour and technology. The rate of labour participation grew very slowly during this period because the growth rate of population was very low (Schultz, 1953, p.136). The basic model that every business in the people’s republic of China followed was focused on investment. This strategy was taken only to achieve economies of scale and high rate of growth by the government of China (Naughto n, 1995, p.45). However, it was not much of a success and led to many unfavourable consequences for the society. The agricultural production in the country also faced a setback because of this reason. In the post 1990 period, the economy of China again started growing at a very high average rate of 10% and it was accompanied by a very high rate of inflation. The Asian financial crisis had a very little impact on the Chinese economy only through the fall in the FDI and reduction in the exports of the country. This is because China had very large reserves and the cash inflows that took place in the country were mainly long term in nature and could not be withdrawn by the investors. But it was not completely unaffected. The rate of unemployment was increasing and the growth rate was

Global Marketing Essay Example | Topics and Well Written Essays - 750 words

Global Marketing - Essay Example There are many factors such as the changing consumers’ demographics and expectations, the nature of competitions and the advent of technologies that affect the operations of a firm among others. Question One: Environmental Factors Affecting Inniskillin The environmental factors play a significant role in the business and in a country’s growth. The numerous factors that will be discussed in this context are political factors, economic factors, social factors, technological factors, environmental factors and legal factors (Jones & Hirasawa, 2008). Political Factors It can be mentioned that the political as well as the legal factors have been favourable for the success of the Inniskillin. After the end of the prohibition on sales of the alcohol, most of the companies have built their reputation in Canadian market of spirits and beers. Despite the wine market remaining sectioned, the market seemed to be expanding because of the Vintners Quality Alliance (VQA) that assists in maintaining the standard as well as the quality control. This can assist the Canadian wine to achieve more recognition in the global market especially for the production of the Icewine. It has been apparent from the case study that because of the permission that Vincor received from the North American Free Trade Agreement (NAFTA)., the company was capable of being the biggest wine shop in the country of Canada. It permitted Vincor to set up its own shops whilst the other small wineries were capable of selling only at the government-owned stores since they had limited options from the Liquor Control Board of Ontario (Jones & Hirasawa, 2008). The company was capable of gaining competitive advantage because of its own distribution channel in Canada. It was further apparent from the case study that domestic prices of the wine of the wineries in Canada were controlled by the government monopolies for getting their wine listed so that they can distribute as well as sell their wines. This led to low-sales volumes as well as restricted the options available in exporting, tourism activities along with the restaurant trade. Economic Factors The economic factors have been quite favourable for the Inniskillin. The reasons behind this have been the rising incomes as well as the rise in the consumption rate of the wine in terms of values and sales. The industry sought the global pressure of consolidation. However, Inniskillin undertook expansion strategy and thus enjoyed the benefits of economies of scale via acquisition so that it can produce cheap wines and thus ac hieve recognition in the domestic as well as global markets. It has further been apparent from the case study that because of the economic activities that have been concerned with the agriculture in Canada, the production of better quality European Vinifera has been possible (Jones & Hirasawa, 2008) Social Factors It can be mentioned that the taste and the preference of the consumers evolve on a continuous basis. With the rise in the income, the consumers were becoming more concerned regarding the taste. The premium wines became popular at the expense of low tier wines. It was because of the evolving consumers’ awareness regarding the premium brands that helped Inniskillin to enhance their product quality (Jones & Hirasawa