Japan's employers pay higher hourly labor costs, including wages and social security payments, at 21.9 euros per hour (2,400 yen). But in China, there is an unbalanced labor cost between inland China and coastal area of China. China has a lower cost compare with Japan. For the company, choice central and western China to build factories can reduce labor costs. Marketing factors
China is the world's most important CD, DVD players market. The growing wealth of the Chinese people has added Chinese purchasing power. China's main import markets, in order of importance, are Japan (13.3%), European Union (11.7%), South Korea (10.9%), Taiwan (9.1%), and the United States (7.2%). Therefore, Japanese products are competitive products in China. But we also contend with other Japanese company like: Sony, Panasonic. Local Chinese companies are holding an important market share. Trade barriers
China has a trade policy that makes it impossible to export to them under normal conditions. It is more profitable than exporting there because their import tariffs are superfluous. But foreign companies need to cooperate with a local Chinese company. So, we should find and cooperate with a competitive company. The Chinese government encourages new and high technology into China. So, in China the company may have a relatively good business and growth environment.
The Gross Domestic Product (GDP) in China was worth 8230 billion US dollars in 2012. The GDP value of China represents 13.27 percent of the world economy. GDP in China is reported by the The World Bank Group. From 1960 until 2012, China GDP averaged 1102.1 USD Billion reaching an all time high of 8230.0 USD Billion in December of 2012 and a record low of 46.5 USD Billion in December of 1962. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final...
Please join StudyMode to read the full document