Doing business in China has many challenges and many advantages. Many trade-offs happen to help both the United States and China become successful. Americans with aspirations of obtaining a piece of the Chinese-market pie, must invest the time to understand the trade offs and benefits China offers.
Doing business in China as it relates to the United States
World Trade Organization
China, with a population of more than one billion people, is a country full of marketing potential. However, with a country so rich in history and culture, there are many factors to be considered by marketers. Some of the most important and influential elements such as the monetary policy, currency system, market agreements, and environmental factors of the country, must be further examined.
China maybe referred to as the "Land of opportunity". China continues to provide low cost operations, but is gaining many skills needed to compete in the market.
One of the major changes China made to become competitive is, in September of 2001, China took a large step in becoming a country that other countries desired to do business with by developing economic relations and trade cooperation, and they joined the World Trade Organization (WTO). As of January 1, 2002, the WTO had a membership of 144 countries. With headquarters in Geneva, Switzerland, the WTO is a global organization dealing with the agreements and disputes of trade between nations. (Prime, July) Because their economy has been steadily improving over the past two decades, China wanted the stability and assurance to keep this growth long-term. By joining the WTO, China will no doubt be a paramount power early in this century in relation to trade.
Before China joined the WTO, high tariffs and other import restrictions kept many countries' products out of China's market. Joining the...