Posted: April 4th, 2019

Assignment – 1 MGT-321 Introduction to International Business

Assignment – 1 MGT-321 Introduction to International Business

Assignment-1

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Please read Case 4: “Will China Continue to Be a Growth Marketplace?” available in your textbook, and answer the following questions:

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Assignment Questions:

1.
Will China maintain its strong economic growth in the years to come? Some suggest it will until 2050. What do you think?

2.
If China will go from 17 million to 200 million middle- and upper-income people by the early 2020s, would the scenario presented by Best Buy not be applicable anymore? Would newly rich Chinese customers engage in this purchasing in the 2020s?

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3.
With Alibaba’s ownership of the very popular Tmall and Taobao online shopping systems (similar to eBay and Amazon) and its spread across the world, will a Western-based online shopping culture ultimately infiltrate China?

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Will China maintain its strong economic growth in the years to come? Some suggest it will until 2050. What do you think?
China has been experiencing rapid economic growth over the past few decades, which has positioned it as one of the world’s largest economies. While it is challenging to predict long-term economic trends with certainty, several factors contribute to the belief that China’s economic growth may continue in the coming years. These factors include:

a. Domestic Consumption: China has a large population, and there is a growing middle class with increasing purchasing power. This consumer base provides opportunities for domestic businesses and international companies operating in China.

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b. Government Initiatives: The Chinese government has implemented various policies and initiatives to promote economic growth, such as the Belt and Road Initiative, which aims to enhance connectivity and trade between China and other countries. Additionally, China is investing heavily in technology and innovation, which can contribute to sustained growth.

c. Global Integration: China’s integration into the global economy has facilitated trade and investment. The country has established numerous trade agreements and participated actively in international organizations, enabling it to access global markets and resources.

While these factors suggest the potential for continued growth, it is essential to consider challenges like an aging population, environmental issues, and the need to transition to a more sustainable and innovation-driven economy. The trajectory of China’s growth will depend on how these challenges are addressed.

If China will go from 17 million to 200 million middle- and upper-income people by the early 2020s, would the scenario presented by Best Buy not be applicable anymore? Would newly rich Chinese customers engage in this purchasing in the 2020s?
With a significant increase in the number of middle- and upper-income individuals in China, there is a strong likelihood that their purchasing behavior will change. As more Chinese consumers become affluent, their preferences and consumption patterns may evolve. This shift can impact the applicability of scenarios like the one presented by Best Buy.

Newly rich Chinese customers are likely to engage in purchasing premium products and services, including electronics and other consumer goods. However, their preferences may also diversify, and they may seek experiences, luxury brands, and higher-quality products. The emphasis on status, quality, and brand recognition may become more pronounced among this demographic.

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To cater to the changing needs and preferences of these customers, businesses operating in China would need to adapt their strategies accordingly. This may involve offering a broader range of high-end products, enhancing customer service, and providing unique shopping experiences.

With Alibaba’s ownership of the very popular Tmall and Taobao online shopping systems (similar to eBay and Amazon) and its spread across the world, will a Western-based online shopping culture ultimately infiltrate China?
Alibaba’s ownership of Tmall and Taobao, which are widely used online shopping platforms in China, has already influenced consumer behavior and the retail landscape in the country. These platforms have facilitated the growth of e-commerce and contributed to the development of a distinct online shopping culture in China.

While Western-based online shopping platforms like eBay and Amazon have global reach, they have faced challenges entering and establishing a dominant presence in the Chinese market. The unique characteristics of the Chinese market, such as consumer preferences, cultural factors, and the regulatory environment, have given rise to local players like Alibaba and JD.com.

However, there has been some influence of Western-based online shopping practices in China. For example, the popularity of cross-border e-commerce platforms has allowed Chinese consumers to access a wider range of international products. Additionally, Chinese consumers have shown interest in Western brands and products, especially

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