: Country Risk and Strategic Planning Analysis
Country Risk and Strategic Planning Analysis
Direct export access to China used to be difficult due to the complexity and slowness of the country 's customs rules and regulations. But with the relaxation in regulatory restrictions and the opening of its markets to foreign investors, China could become the next successful market for cognac and champagne importers. The elimination of tariffs in the wake of China 's accession to the World Trade Organization may encourage more cognac and champagne importers to the mainland, thereby skewing cognac/champagne import statistics in the near future. Last year, China ranked 20th in terms of cognac imports, with 1.2 million bottles (Export.gov). Since China became a member of the World Trade Organization, there are less technical and tax obstacles for imports. The Chinese people now have stronger buying power. This paper details a risk analysis on China and discusses how a division of LVMH plans to manage these risks.
Country Risks
When entering into negotiations it is important to demonstrate dedication to working toward a fair deal and approach negotiations from the standpoint of long-term business involvement. One of the most important aspects of doing business in China is understanding some of the cultural differences between China and western countries. Another aspect is researching tactics used by Chinese business negotiators and being prepared for our own negotiations. While researching their culture and how the Chinese handle business LVMH decided it would be wise to control the schedule and location of any meetings, be prepared to quote competitors prices, present gifts in hopes of gaining friendships, but not being afraid to state that we may do business elsewhere.
There are many political, legal and regulatory risks involved when dealing with other countries. Therefore, it would be for the best for LVMH to join the USCCC (America-China Chamber of Commerce). This organization strives to provide its members and
Direct export access to China used to be difficult due to the complexity and slowness of the country 's customs rules and regulations. But with the relaxation in regulatory restrictions and the opening of its markets to foreign investors, China could become the next successful market for cognac and champagne importers. The elimination of tariffs in the wake of China 's accession to the World Trade Organization may encourage more cognac and champagne importers to the mainland, thereby skewing cognac/champagne import statistics in the near future. Last year, China ranked 20th in terms of cognac imports, with 1.2 million bottles (Export.gov). Since China became a member of the World Trade Organization, there are less technical and tax obstacles for imports. The Chinese people now have stronger buying power. This paper details a risk analysis on China and discusses how a division of LVMH plans to manage these risks.
Country Risks
When entering into negotiations it is important to demonstrate dedication to working toward a fair deal and approach negotiations from the standpoint of long-term business involvement. One of the most important aspects of doing business in China is understanding some of the cultural differences between China and western countries. Another aspect is researching tactics used by Chinese business negotiators and being prepared for our own negotiations. While researching their culture and how the Chinese handle business LVMH decided it would be wise to control the schedule and location of any meetings, be prepared to quote competitors prices, present gifts in hopes of gaining friendships, but not being afraid to state that we may do business elsewhere.
There are many political, legal and regulatory risks involved when dealing with other countries. Therefore, it would be for the best for LVMH to join the USCCC (America-China Chamber of Commerce). This organization strives to provide its members and
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