Country Profiles –China & Analysis the entry of Manufacturer Industry
MBA 780 W1 2008 Spring
Instructor: Professor Christian J. Delaunay, Ph.D.
Student: Hsiao-Shan Lin
ID: 09784
Table of contents
Sections:
1. Executive Summary……………………………………………………..p.2
2. Country profiles
A, Geopolitical environment…………………………………………….p.2-3
B, Economy………………………………………………………………p.3-5
C. Financial System……………………………………………………..p.5-6
D. Culture…………………………………………………………………p.6
3. Entry of manufacturing Industry…………………………………………p.7-8 A. Labor……………………………………………………………………p.8 B. Counterfeit & Piracy……………………………………………………p.9 C. Quality Control………………………………………………………….p.9 D, Public health & Security………………………………………………..p.9-10 F. Regulatory environment…………………………………………………p.10
4. Nike Inc., In or out of China ? …………………………….....................p.10 5. Conclusion…………………………………………………………………p.11 Endnotes …………………………………………………………………p.12-13
Executive Summary:
The project discusses China’s geopolitical, economic, cultural environment and financial system. Chinese communist party owned the power monopoly since 1949 and controlled centrally not only in politics, but also in finance, media and economy. In late 1970s, China shifted from a command economy to a more market-oriented economy and then enjoyed accelerating economic growth. China attracted huge foreign investment and many MNCs outsourced China for cheaper costs for the last two decades. But the poor quality control and rising labor wage causes the manufacturers raise concerns over entering, staying, or leaving the country. The paper will analyze the various concerns for the entry of manufacturers in China and whether Nike Inc. should stay or leave China for its footwear manufacturing outsourcing. .
A. Geopolitical environment
China is the most populous country in the world with 1.33 billion people. Since