International business Research Paper Example | Topics and Well Written Essays - 1000 words

Inter commonwealthal vexation - Research Paper ExampleThe analysis has been done in terms of the nations political and economic climate, their methods of marketing and distribution and also the labor climate in the two countries. Economic and political climate for foreign business capital of Singapore has an extremely successful and developed free market economy. It also offers a corruption free and open environment where prices remain stable and the per capita gross domestic product growth also remain high in comparison to other developed nations. The economys high dependence on exports of products same(p) electronic and information technology products, pharmaceutical and growth in financial services make it a pop place for conducting business. The nation has demonstrated a gross domestic product growth of 7.1% between the years 2004 and 2007 (CIA, Economy - overview). On the other hand Hong Kong also demonstrates a free market economy which depends highly on multinational finan ce and trade. The nations open economy was however greatly affected by the global economic recession which makes it a less popular place, in comparison to Singapore for doing business. The residents of Hong Kong can establish RMB denominated savings accounts, the RMB denominated corporate, and the Chinese government bonds have also been issued in the nation. Moreover, the RMB trade settlement has also been allowed in Hong Kong. The nation has a GDP growth rate of 3.8% between 1989 and 2010, however the growth gradually slowed down in the year 2009 (CIA-a, Economy - overview). It is app arent that the high GDP growth of Singapore in comparison to Hong Kong coupled with a free market economy makes it more than popular for conducting business operations. Also the nations growth in the financial sector and high dependence on trade and finance compliments the same. Methods for marketing and distribution With improvement of the Singapore economy there has been an increasing amount of af fluent consumers who are able and willing to spend and consume more. In addition to this a number of late shopping malls like the VivoCity, Ang Mo Kio Hub and Central have emerged which have further added stimulus to the retail sector since 2007. The existing shopping malls like Centrepoint, White smoothen and Tampines Mall have also been revamped, with the new extensions established to accommodate more number of retailers for remaining competitive. The inflows of new retailers in the selling spaces have further attracted more consumers who have been increasingly visiting them. This had boosted their growth further in 2007 (Laposte, Singapore). There are two different categories of consumers in the country Hong Kong. There are the local consumers, who account for 6.5 million numbers, while on the other hand the tourists, who are avid lovers of the luxury items. The tourism sector generates greater than ten cardinal USD of income every year. It must be noted that tourists who come for shopping in Hong Kong are primarily Chinese from Mainland. The distribution network comprises of many medium and pocket-sized family-type enterprises which try to remain in groups. The larger stores like the Lane Crawford, Sogo or display a very upscale image while the supermarkets and the neighboring stores like Wing on, Jusco and Sincere remain more profitable for making bulk products. The second market is more dominated by duopoly by Wellcome and Parkn shop. Hong Kong also has a number of discount stores