Sunny Hwang certainly recognizes the importance of knowing as much as possible about the challenges of doing business in

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Sunny Hwang Certainly Recognizes The Importance Of Knowing As Much As Possible About The Challenges Of Doing Business In 1 (45.11 KiB) Viewed 13 times

Sunny Hwang certainly recognizes the importance of knowing as much as possible about the challenges of doing business in a foreign country before getting involved there. An entrepreneur who is considering expanding into China to connect with an outsourcing partner, to establish a production facility, or to reach a new market should know the following key facts about the country: China's population of 1.36 billion people is the largest of any country in the world. China is the third-fastest-growing export market for small-and medium-sized North American firms. • Income disparities in China are great. Annual income in urban areas ranges from around $1,557 per person in Shanghai (China's wealthiest city) to the more typical $827 per year in other cities. Income in rural areas is much lower, with the average farmer earning a mere $2,186 per year. • The Chinese software market in growing at an annual rate of 30 percent. Use of the Internet is increasing dramatically. The demand for consulting services in China is increasing, especially for those related to information technology. • China has entered the World Trade Organization (WTO), a development that has raised concerns about intellectual property protection. Many hope that its entry into the WTO will force more vigilant protection of intellectual property rights and a crackdown on counterfeiting. Web Case 08: Sunny Designs, Inc. Many Chinese consumers have cell phones and regularly surf the Internet (especially in large urban centres such as Beijing, Shanghai, and Guangzhou). • Counterfeit goods (including clothing, leather goods, software, and CDs) are readily available in China at a fraction of the cost of brand name items. 4. Chinese merchants usually do business only with vendors with whom they have established relationships. Questions What challenges to doing business in China did Hwang experience? Give the key facts about China and list issues that may present distinct problems for small North American firms doing business there.