EGT1 Task 4 China

2192 words 9 pages
There are many advantages to expanding your business to China. Not only is
China considered one of the largest economies in the world, it also has a vast emerging market that is still growing (Startup Overseas). Although China has embraced many
Western Business ethics and practices, there are still numerous cross-cultural differences that can make it difficult to succeed without sufficient research and knowledge of the culture. Examples of these cross cultural differences include the
Chinese’ attitude toward work and workplace, the labor laws, and how Chinese businesses collaborate with other organizations. More differences include how we market and sell a product, and how pricing differs between our two countries. Perhaps the most
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For example, although most girl-intended American Dolls wear pink, pink is considered a gender-neutral color in China. The color white is also associated with death and mourning, so any “wedding dress” dolls would need to be recolored to the traditional Chinese color of red (KaiWen, 2010). The clothing of the doll would probably have to become more modest. In looking at Chinese dolls, most are dressed in Geisha style robes. The United States dolls tend to show more “skin.” The packaging of the doll would also have to be translated to Chinese. The company would also need to avoid any symbolism that might offend Chinese parents or even the government, such as any
American paraphernalia, like the flag, or anything with a religious context, like a cross.

Imagine the price of this toy is $5.00. The value of a $1.00 is equal to 117.78 (¥).
That would mean that the exchange rate on the toy would be $588.90. But with the
Purchasing Power Parity (PPP) factor, we know that China’s market exchange rate is .6
(World Bank, International Comparison Program Database, 2014). This means that
China would actually pay 60% of what the United States would pay for the toy. The price of the toy would be 353.34 ¥. This price could be adjusted depending on competition in the Chinese market. The American company would also need to increase the price based on exporting costs.
A sale price, or discounted price, in China is also different from what a sale price would be


  • Egt1 Task 4
    2593 words | 11 pages