1.

Location
i.
How far is your country located from your target markets?
Distance from China to United States is 11,671 kilometers.

ii.
What difficulties may you encounter?
one of the problems is the transport of the product but nothing that
can not be solved

2. Infrastructure
i.
What is the quality of the telecommunications system, highways, rail
system, and ports?

Transport in China has experienced major growth and expansion

in recent years. Airports, roads, and railway construction will
provide a massive employment boost in China over the next
decade. Roads. China has, in the past, underinvested in roads; its
road network still ranks among the sparsest in the world relative to
geographic area and population. Chinas road network in 2002
extended roughly 1.76 million km, with some 25,130 km of
expressways and about 27,468 km of other high-grade highways
in operation

ii.
How will this country's infrastructure impact the shipment of raw
materials to your plants and shipment of your product to your target
markets?
The country has the worlds best supply chains of components for
industry and its infrastructure works well. Has returned production
from China to America because savings on transport and raw
materials offset the higher labor costs, because its more
expensive the shipment.

3. Labor

i. Is there a readily available supply of workers?

The readily available labor supply continues to contract. The scale
of manufacturing employment in China dwarfs the numbers of
manufacturing workers in other countries; Chinas manufacturing
 sector has shed surplus workers from inefficient state-owned
factories, while increasing employment in the private sector.
ii. How well educated is the average citizen?

Chinas literacy rate: (age 15+ who can read and write)
total population: 91.6%
male: 95.7%
female: 87.6%

School life expectancy (primary to tertiary education):

male: 11 years
female: 12 years (2009)

Education expenditures:
1.9% of GDP
Global rank: #172

iii.
Will language or culture present any difficulties?
The difficulties they encountered and the reasons
they attributed to these difficulties. Research
results, derived from questionnaires and
interviews, reveal that the Chinese students
encountered many difficulties when interacting
with students from other countries which they
ascribed to lack of knowledge of intercultural
communication, cultural shock and differences in
nonverbal communication and politeness
strategies.

iv.
Are unions prevalent? What problems may they present?
In theory the appropriate trade union organizations have been
consulted on the level of wages as well as on wage differentials,
but in practice their role in these and similar matters has been
insignificant. They have not engaged in collective bargaining, as
their principal duties have included assisting the party and
promoting production.
 The AFL-CIO will continue to work with allies to raise these critical
issues with the Chinese and American governments and fight for
the freedom of Chinese workers to exercise their basic human
rights.

v.
Is there a minimum wage?
China does not set one minimum wage for the entire nation.
Instead, the task of setting minimum wages is delegated to the
local governments. Each province, municipality, or region sets its
own minimum wage in accordance with its own local conditions .

4. Economic Environment
i.
How would you describe your country's economic situation?
Recent data suggest that the U.S. economy was somewhat more
resilient at the beginning of the year, although performance was
uneven. According to a second estimate, GDP increased at a
seasonally adjusted annualized rate of 0.8% in Q1

ii. Has the macroeconomic situation improved, deteriorated, or

stayed the same during the past five years?
China has become the worlds leading economy. China is the
worlds largest exporter and likely to become the worlds top trader
in 2012.
Its impact on global demand for many goods will rival and often
exceed that of the U.S.
China is more dependent than America on foreign markets and
supplies. Raw exports are roughly three times more important in
Chinese GDP than in American GDP.

iii. Has its currency appreciated, depreciated, or stayed the same

during the last five years? If you notice large changes, what
political, economic, or other issues might have affected these
changes? What will be the cost implications of these trends for
your company?
The USDCNY increased 0.0014 or 0.02% to 6.58 on
Thursday June 23 from 6.58 in the previous trading
session. The USDCNY gained 0.376 or 6.06 percent during
the last 12 months from 6.21 in June of 2015.
5. Political environment
i.
What form of government does this country possess?
China has a government which can be described as:
Communist

ii. How open is it to free enterprise?

On one side are those who favor human freedom.
They trust in the free market and they trust people, not
always to do the right thing, but to correct themselves when
they get it wrong.

iii. How open is it to foreign participation in its market?

China took a major step toward giving foreigners free
access to the worlds third-largest bond market as it tears
down restrictions on capital inflows to counter a cash
exodus thats driven the yuan to a five-year low.

iv. What major problems does the government face?

A rapidly aging population: China will be the first major
economy to go gray before it gets rich.
Placing huge strains on working-age people who will have
to effectively pay for pensions and healthcare for a
disproportionate number of non-working elderly citizens.

v. How politically risky is it? What factors contribute to this political

risk?
No investment destination better illustrates the importance
of managing political risk than China.
Chinese Communist Partys economic reforms have
opened the gates to vast flows of foreign investment,
generated almost miraculous growth.
 The countrys economy and the foreign companies that
depend on its vitality are especially vulnerable to external
shocks, such as spikes in global commodity prices,
epidemics, regional political unrest, and protectionist
sentiment in the Western world.

Summary
Increasing trade grows more in China in all locacion senses, infrastructure, labor
etc., all means of transport in China have grown and have expanded in an
inexplicable way and that in fact creecer job opportunities and because of that it is
small percentage of unemployment which have another very important point is the
high percentage of education they have is miniscule percentage of illiteracy is
known in china. The country economy recent data suggest that the U.S. economy
was somewhat more resilient at the beginning of the year, although performance
was uneven. According to a second estimate, GDP increased at a seasonally
adjusted annualized rate.

China became the largest esportador around the world and they have different
qualities for each type of country, for European countries gives its best quality but
for tersermundistas countries given its lower quality because they are priorities due
to be the largest exporter has become more independent than the United States on
foreign markets and supplies. these countries should give more aid to the countries
that really need it since they are world powers and is easy to recover from a
minimum loan and capital increases were due to the interest with which they lend
money.

China is opened for enterprises On one side are those who favor human freedom.
They trust in the free market and they trust people, not always to do the right thing,
but to correct themselves when they get it wrong and because of that trust
customers increases daily.
China has a goverment communist The Chinese Communist Party rules the
country, yes, but its policies have been less and less communistic since 1978.
China is free enterprise they always try to trust in the people, they not always make
things the right way but if they make it wrong they correct themselves.
China is always a step toward foreigners because they have a free access to the
world third largest bond market China is opening its capital markets to foreign
investors to try and draw money as the slowest economic growth in a quarter
century drives funds abroad, pressuring the yuan.
One of the most major problem that china got rigth now is a rapidly aging
population, they are having to much old people and china will be the first major
economy to go grey before it gets rich. They would have to pay for penssions and
healthcare for non-working elderly people.
The countrys economy and the foreign companies that depend on its vitality are
especially vulnerable to external shocks, such as spikes in global commodity
prices, epidemics, regional political unrest, and protectionist sentiment in the
Western world. This is a risk for the govermente of china because whitout this few
persons will invest.

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http://www.worldbank.org/transport/transportresults/regions/eap/eap-china-
output.pdf
http://www.china-mike.com/facts-about-china/facts-chinese-education/
http://www.immi.se/intercultural/nr13/petraki.htm
http://www.focus-economics.com/countries/united-states
http://www.bls.gov/opub/mlr/2005/07/art2full.pdf
http://country-facts.findthedata.com/q/12/14298/What-type-of-government-does-China-
have
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foreigners-as-outflows-weaken-yuan
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facing-china/