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Transcript of China
China! Altogether Has a stable political government
China has eased their foreign investment laws
the government has been improving the investment environment and protecting legal rights
FIPPA: Canada-China agreement to protect foreign investors from being exploited
Maintains trade relations with many countries through the involvement in various organizations and trade agreements - which allows Hershey's to have access to resources very easily and lead profitable ventures China's Government a fast growing, market-oriented economy, which opens more opportunities for foreign investment
has a broad domestic market potential
In 2010, China was the second largest economy in the world with a GDP of US$5.8 trillion.
In 2011, GDP real growth rate was estimated as 9.2%
China is now the largest export market in Asia
In the worldwide economic crisis, China held up better than other countries since their GDP rose by 8.7% China's Economy BEST country to conduct a business venture!
Hershey's International will tremendously benefit from investing in China! - Over the next few years, as the growing middle class becomes enormous, there will be more demand for chocolates
-An increasing number of Chinese consumers are boosting their spending on chocolates particularly during special occasions
- Consumers have become more conscious of their health; Dark Chocolates are a healthier option, which contains natural anti-oxidents
- North America already has a product line of dark chocolate, which Hershey's can expand into China to cater to the health-conscious population - Around 30 years ago no chocolate was consumed in China
- In 2011, China was the second-biggest confectionery market in Asia, with US $9.5 billion in sales
- In 2010, China’s confectionery sales value increased by 8.8%, due to the rising purchasing power of consumers, and the increasing use of confectionery as snacks and to mark festive occasions
- Since the Chinese population is still new to chocolates, Hershey’s will benefit by setting up in China Confectionary
Market Confectionary Market Headquarters
in Beijing Best Locations to Invest in China! Factory
Hong Kong - located near coastal areas
low and competitive tax rates and has free market policies
- has a reputation for rule of law and corruption -free administration
- many transportation routes
- has a territorial source principle of taxation JOINT VENTURE - the ideal method of setting up in China
- benefit from finding a Chinese partner who has previous knowledge and expertise of China’s industry - China's political and cultural center
- the country's largest science and technological hub
- Of all Chinese cities, Beijing has the most advanced infrastructure facilities - easy access to the other Chinese cities
- easy access to the government, foreign investment agencies, major banks and financial insurance institutions SKILLED
WORKKFORCE Population 4th largest country in the world
Population: 1.3 billion
high population density: 143.43 in 2010 LOCATION Literacy
Rates Total population: 92.2%
Female: 88.5% (2007) Cheap Labour
Low Manufacturing Cost