Please add an executive summary and add an Overall recommendation and risk assessment for making business investments into China.Attached is the research paper to add an executive summary.

China

David Roberts

International Business Practices/Argosy University

Dr. Lydia McKenzie

Date

The macroeconomic factors deal with a study of the economy as a whole. The macroeconomic factors a concern with aggregate concepts such as national income, national output, and national employment, the general level of price and business cycle (Dwivedi, 2001). This research will be based on China economy and the United States. The key metric to research on include GNP, GDP, GDP per capita, unemployment, inflation, foreign exchange rates and international trade. The Chinese economy is influenced by consumer spending, investments level, import, and export. This factor leads to growth in real GDP if any factor is influenced positively. The Fiscal policies adopted by the government and monetary policy influences Chinese economy in one way or the other.

Gross national product (GNP) estimate the total value of all the final products and services turned out in given period by means of production owned by country residents. The GNP rate was 673837.10 in 2015 to 742352.00 in 2016.

The GDP per Capita is computed by dividing gross domestic product (GDP) with a number of people in the population. The China GDP increased from 6.1 billion in term of U.S dollar in 2010 to 7.5 billion in 2011. The figure of GDP increased from 8.5 billion in U.S dollar in 2012 to 9.6 billion U.S dollars in 2013. In 2015 the figure of gross GDP increased to 11.06 billion U.S dollars to 11.20 billion U.S dollars in 2016. The growth in GDP may have been influenced by constant growth in investments level. China is heavily invested by both local and international firm. The growth in national product accounts for all production of good and service offered by residents firms and foreign firms.

The multi-billion industries with U.S origin are located in China. Some of these firms invest in China because China has a favorable political system which helps the firm continues to invest. The Chinese government supports foreign investments as it helps to reduce the unemployment rate. The Real GDP indicates that increase in local and foreign investments contributed to growth in GDP. The Chinese population according to the data above indicated that the population increased each year with a margin of 0.1 percent. The rise in GDP is because of consumer spending. An increase in population growth it means that the country the household spending also increase hence influencing the gross domestic product.

China is one of the countries with the largest population in the world. The unemployment rate declined in China from 4.09 percent to 4.05 in 2016. The decline reveals that country labor force increased. Labor is a factor of production and therefore an increasing labor force it means that the number of output produced increases hence increasing real GDP. The GDP, in this case, is measured by a number of hours worked and wages paid to labors. The wage rate may decrease because of the abundance of labor. The availability of laborers ready to work reduces the cost of production because the producer may decide to employ more and pay less. Increase in a number of people influences GDP growth.

This is because the individuals below 15 years old are not allowed to work. The household spending is the amount of final consumption expenditure made by resident household to meets their everyday needs, for example, food, clothing, house, energy, transport and other necessities needed by consumers. Consumer spending or consumption is influenced by autonomous pending on available money. The consumer spending may be influenced by inflation rate and policies adopted by the government. Consumption occupies approximates 60 percent of overall GDP. The government expenditure exclusive of interest loan is included in the government spending. The Chinese population is huge meaning that an increase in each individual may influence household consumption on good and services.

Children born during this period may not influence GDP through increasing output level but spending ratio for basic commodities will increase. The Chinese inflation rate has declined in 2015 to 1.44 percent and it increased to 1.8 in 2016. The decline in inflation rate indicates that the Price index had stabilized. Increases in inflation rate affect the prices of goods and services. In 2015 to 2016, the exchange rates were stable meaning that there were favorable investments opportunities. International trade includes goods and services export or imported into the country. China is the largest exporter of goods and services because there are many international companies operating in China.

For example, some companies such as General Motors drive most of its revenue from China and North American segments. The exports decline from 2.273.47 percent to 2097.63 percent in 2015 to 2016 respectively. The growth in exports is usually influenced by trade agreements between nations but in this case, the exports were affected. The Government of China has entered into global free trade, which influences global trade. The import of Chinese product also decreased from 1679.57 billion U.S dollars to 1587.93 Billion-U.S dollars. The decline in import may be influenced may increase in customs duty for import. The importer usually bears the burden of import especially when the government has power to put price control but as well, the importer may pass the cost of product and burden associated with tax to consumers.

The table below indicates the United States GNP, GDP, and GDP per capital unemployment, inflation, foreign exchange rates, and international trade.

The United States Government adopted various expansionary fiscal policies in order to stimulate economic growth in 2008 -2009 though implementing tax rebate. The country was also experiencing bank crises and financial crisis, which affects GDP growth rate in 2010. The country had reduced government expenditure on military in the period. The Federal Reserve, on the other hand, it adopts monetary policies targeting to reduce prices of good through increasing the fed rate and reducing the fed rate in order to encourage spending. The United States recorded an improvement in the total gross domestic product per capita because the Total gross domestic products increased each period.

Consumer spending, industrial investments, Government expenditure and traditional trade influence an increase in GDP. The United States spends most of its budget in funding states education, health and in improving transportation network. In addition, the funds are a channel to pay civil servant for example politician and other civil servants like army personnel. The working population increased from 2015 to 2016, which indicated that there was an increase in the number of labors. The number of laborers might decrease the cost of labor but the government has put some limitation on the minimum wage rate. All organization must stick to that wage rate outlined by the federal government. Increase in the number of people in the U.S might suggest that there is an increase in household spending which definitely affects consumption of good and services.

Comparing United State gross domestic product with China it is clear that U.S has larger GDP even though China might have the largest population. The levels of young people who are not working have insignificant benefit in influencing the overall GDP even though they do participate in spending. The Gross Domestic products of United State is large because the government, spend a lot on the federal government by allocating funds for fifty states. In addition, the level of investments is high in U.S, which indicated, that the investments level contribute greater portion in the overall GDP. The wage rate in the U.S is high as compared to China. Therefore, the wage rate increase income collected from the household in term of rents and tax on salaries.

Most of the residents in United State own their apartments. In the process of selling a new apartment and purchasing new factory or equipment, there is a portion, which is accounted in the overall GDP even though old properties are accounted in the GDP during the year the product was bought. The unemployment rate is low which mean that there is an increase in the number of laborers. Additional workforce reflects in the additional output of services offered, increase in the number of people who receive wages hence improving the gross domestic products. China employment rate is lower as compared to the U.S because of the inflation rate on price still low and cost of labor is low and that why most United State companies are interested in investing in China.

The exchange rate of U.S dollars to China currency indicates that the U.S currency is fluctuating. The imports and exports are influenced by U.S currency value and the trade agreement. President Bush and Obama government signed trade agreements with a variety of states. As a result, the export and import improved because there were not trade barriers that would limit import or exports of goods. In 2015, the exports were 1504.9 billion U.S dollars and 1454.6 billion U.S dollars in 2016. In 2015, the imports were 2241.1 billion U.S dollars and in 2016, the imports were 3043 billion U.S dollars.

According to the two countries' Economies Chinese and the U.S, the U.S economies increased its import than China which indicates that there was low production for goods which could supplement the goods need by household and that why the imports increase than product exported in other nations. United State had GNP of 18325.234 in 2015, which increased to 18821.557 in 2016. This indicates that the income collected from U.S resident surpassed GDP. This information indicates that the country economy is strong and stable.

According to the data, which can be reviewed from the table above, China GDP is lower than U.S GDP. The explanation behind this argument is that U.S government spends more to fund states and development within states. The U.S has higher investments level that China. The cost of labor and rental in the U.S increase the money collected from investments and from the household. China has a huge population with a low number of working force. The wage rate is law hence reducing income collected from the household. GDP per capita for both countries increased with certain margin because of improvements in Gross Domestic Product. The government policies influence the consumer spending hence increasing real GDP.

China is a country with an enormous cultural richness. One of the recurring characteristics of Chinese culture has been its isolation from the world, a philosophy that has changed lately. Within the Chinese territory, there are more than fifty ethnic groups, each with its own spoken language and its specific customs. Each one of the multiple Chinese ethnic groups contributes to enrich the culture of the country with its traditions, tastes and abilities. Although mandarin is the official language, in many rural areas the local variety is still spoken. Some of the most important and well-known Chinese traditions are framed in their festivals, especially in the Spring Festival, which commemorates the entrance of the Lunar New Year that usually coincides with the last days of January or the first of February of the Gregorian calendar. The families meet the eve and celebrate their arrival with dances, posters, decoration and traditional food.

China is a socialist regime; China is a country of millenary culture whose cultural parameters are hardly understood by Western culture. The political regime of China is a republic of the socialist system, in which the leadership of the State rests on an elected committee. The term republic refers to the form of government of a nation in which the president or college presidency is elected by the people for a specific time and during which the exercise of power is regulated by constitutional laws. The characteristic of the Republic is to be a regime in which the foundation of public power or authority is popular sovereignty.

According to socialist thought, it is a political regime that seeks to implement and give effect to the rights of the people. Its social origin goes back to the formation of coalitions of non-unified parties that do not contemplate the existence of an opposition party. These formations were called Popular Fronts. In the States that are organized like this, there is universal suffrage and the party or grouping of parties is structured pyramid ally. Likewise, it is governed in its operation by democratic centralism.

The application of certain export restrictions with respect to their culture as a feature of China's business model, according to a report on this country published today by the World Trade Organization (WTO). Economists from this entity examined the Chinese trade policy of the last two years - an evaluation exercise in which all the member states of the organization participate - and confirms that China is the largest trade agent in the world, if it excludes trade within the European Union. China imposes taxes on exports, quotas and sometimes even bans on a list of products that it updates annually, for reasons related to the protection of the environment or natural resources. However, it seems that in practice these and other measures that affect exports have been used as instruments of commercial policy to encourage or discourage exports, as needed to meet the objectives of industrial development.

There are certain political risks that pertain to doing business in China. There are still many challenges related to the problem of the aging of the population, the reduction of the labor force, the lack of openness of the political system, the competitiveness of an economy dependent on high investment costs and the expansion of credit. Political forces support domestic production largely, and manufactured products continue to dominate exports and represent 94 percent of the total. Within this group include office machines, telecommunications equipment, textiles and clothing. China maintains authorizations for imports, restrictions or prohibitions based on State security, public morals, the health of people, animals and plants, environmental protection, as well as reasons related to the balance of payments as per their commercial regulation. Regarding the public subsidies it provides, it is emphasized that several sectoral support programs are maintained at the national, regional or company level, whose application is not always transparent and could not be fully identified by WTO experts. Given that specific support measures are often the result of internal administrative decisions, it has not always been easy to identify them, and they are usually only in Chinese. On the strengths of China's economy, the WTO highlights the strength of domestic demand, especially private consumption.

The United States is one of the countries with the greatest diversity in the world, from its geography to the demographic composition; It is impossible to speak of a unique feature in this scenario of geographical, racial, ethnic and cultural wealth.

The flow of immigrants, who come from the most remote regions of the planet or the bordering nations, has been continuous and constant for 150 years. For example, in 2013 there were around 41.3 million immigrants in the United States, which represented 13% of the total population. If we take into account the children of immigrants born in the United States - the so-called second-generation immigrants - the figure reaches 80 million, or what is the same, a quarter of the 316 million people living in the country. The diversity is also reflected in the geography and climate. There are landscapes as diverse as Alaska, the Arizona desert , the Niagara Falls on the Canadian border, the beaches of California, the corn fields of the Midwest or the most cosmopolitan cities on the planet.

The society of the United States is built on the basis of a diversity of ethnic groups and cultures that have helped shape the values ​​of Americans. Some individuals and groups have sets of respected values ​​that are quite different from those belonging to other individuals and more common groups. The attitudes and behavior of people are based on their values. The reality of these differences will be more evident. You will experience something like a cultural shock as you learn to adapt to the new culture and the new lifestyle. This is very normal and requires time and patience.

Federalism is the political system by which the functions of government are divided between a central power and associated states. A system of which the USA is a pioneer in theory and practice. The Federal Government exercises exclusively the minimum and indispensable competences to guarantee the political and economic unity of the nation, in matters such as foreign policy and defense, opposing systems based on a unitary or centralized state. The rest of the competences correspond to the federated states or they are exercised in a coordinated way in both levels of government, as in the case of the Education policy. Porte under the federal power is the power of the states and after them, the local power, which takes multiple forms and has as a basic administrative unit the county.

The business risks associated with cultural and political factor in US are as follows. Business risk are relatively less with respect to the cultural as well as political elements as pertains to the natural level of risk that a business entering the country runs when carrying out a non-profit activity, or with operating profits. Operating profits are unpredictable because the total income, and many of the expenses that contribute to producing income through mitigation activities due to climate changes, are uncertain.

Operations, marketing, and human resource considerations in China

China is the fantasy market for the many. It has the largest place of economy in the cooperation world; by this business are more active and booming due to this the customer’s wealth increases. All these factors attract the entrepreneurs to make the frame, growth and the fortune. For many of the Multi-National Companies, China is their single major market already, and it continues to develop, as the Chinese innovation to continue it and to reach the global.

On the same time, China is frequently talk about the with fear. The countless stories that the foreign entrant who failed hugely, that not capable for the compete and survive in the intolerant of the environment of the business. The barriers in the Language, a lack of the transparency and competition in the local, among further factors, have existed by the side of many perils.

Many of them are around the chine to enter into the business world, to build their business environment but they are not gaining the valuable things from that they are rising countless mistakes. There are many of the lessons to learn to save from making the mistakes or the errors; this all leads the interest to find the success of the china.

Many of the companies have reach out in the direction of us, wanting for the creation of the local version of their product and the services. Many of them are often seek into the translating the market for the Chinese. This is the flawed approach already. The assumption which is based on the product in the market that when reaches the china, in that case only the people will be accessing their language, but it will not happen at very time and it not true.

By the way of entering the China, that will assume the product lost in the market and should be rediscover again. It has many of the way to start up the new market business for the current solution by test. They use the test as the Riskiest Assumption Test or the method of the or Minimum Viable Product is used to mindset that evaluate what is that and why it is not working out.

The difficulties that Depending on how the product to built, it is the work that already not work out in the china. It has the regular knowledge that has many of the international services that which are blocked with the Great Firewall of the China. That there are the many landscape that they require for the awareness.

China has the second position in the marketing and the advertisement after the U.S, the professionals of the marketing which looks as the reality stage in the market of the Chinese and it predict its future. Today Corporation world of the companies which turns their backside for the cost cutting and it will be shift to drive the growth by the new innovative Pricing Strategies that in the China.

Thus the pricing plays the major role in the marketing, which actually generating the revenue, it has consequently, the impact than before ever it happen. By this impact many of the responsibility comes as the awareness of the customer, the competition increased in the market as well as it ever change in the economy it leads to the difficulties in the tools of the pricing that to ensure the impact which is suitable and gives the profitability.

The logic of the china is true. Though some of the separate characteristics of the customer in the Chinese or the market of them will make it even extra complex to discover the right pricing strategy for the product and service. Especially the feature of customer has the value to influence in the China. It means that the supposed the customer value is hugely in china it affects in the pricing strategies.

China is a country, which is developing with the world largest population. It has the rating of the billions of people in the human resources, they are developing the human resources actively, it brings the full play in the ability of the potential, it values each of the individuals, and people are promoting the development and providing the supports to the labor.

A similar requirement for advancement is by all accounts a developing accentuation as a feature of the selecting endeavors in China for some associations. The quickly rising economy in China has driven residential and remote organizations to regularly go after a similar pool of competitors. Occupation jumping has turned out to be typical as the workforce's longing for development and change increments. The HR capacity of outside organizations in China cannot just spotlight on enrollment, yet to hold qualified talent, it should progressively center on preparing and vocation improvement for its workers.

Human resources has formed into a strategic accomplice in most huge organizations in the United States. This is significantly more imperative with regards to working abroad when social and lawful issues become possibly the most important factor.

A portion of the real purposes behind the turnover included better pay bundles, profession openings, preparing and advancement openings, advantages, and prospects for progress. Along these lines, as in the United States, the way to pulling in and holding qualified competitors in China must be multi-faceted with regards to a remote organization's prosperity and cost-sparing endeavors. Numerous organizations have started leaving on this far reaching approach by concentrating on school enlistment programs, using social expert systems, creating and really giving on-loading up and consistent preparing to their workers, and putting more accentuation on profession advancement and progression arranging.

Human Resources cannot be just seen as a managerial capacity – employing and terminating, paying charges and advantages, and so forth. As the workforce in China keeps on developing into a key contender in the worldwide economy, so should the push to enroll and hold keep on evolving for organizations who look to capitalize on this workforce.

References

Ackerman, F., & Program for the Study of Sustainable Change and Development (Tufts University. Global Development and Environment Institute). (1997). Human well-being and economic goals. Washington, D.C: Island Press.

Ambler, T., Witzel, M., & Xi, C. (2001). Doing business in China. Routledge.

Dwivedi, D. N. (2001). Macroeconomics: Theory and policy. New Delhi: Tata McGraw-Hill.

Erickson, F. (1997). Transformation and business success: The politics and culture of United States. Anthropology & Education Quarterly, 18(4), 335-356.

Federal Reserve Bank of St. Louis, (2018). Economic Research. Retrieved from https://fred.stlouisfed.org/search?st=GNP+FOR+CHINA

Graham, J. L., & Sano, Y. (1999). Smart bargaining: Doing business with the Japanese. Ballinger Pub Co.

Li, S. X., & Huang, Z. (1995). Managing buyer-seller system cooperation with quantity discount considerations. Computers & operations research, 22(9), 947-958.

The Statistical Portal, (2018): Retrieved from https://www.statista.com/statistics/263646/import-of-goods-to-china/

Wank, D. L. (2001). Business, Culture and Politics in a Chinese city (Vol. 14). Cambridge University Press.

Zhu, Y., & Warner, M. (2004). Changing patterns of human resource management in contemporary China: WTO accession and enterprise responses. Industrial relations journal, 35(4), 311-328.