Business Studies Sample Paper on Export and Import Management

There are several factors at play when considering exporting a service/product.  These include market potential, accessibility, ability to expand, stability of the target country, cultural practices, spoken languages and the legal ramifications (Kumar 109).

This memo will seek to address the export opportunities available for American products to China. China has a vast territory (about 9.6 km square), a population of about 1.37 billion (according to World Bank) people and an assortment of natural resources.

Any paper on the export potential of china will not be complete without a narrative of China’s history. The year 1949 marked the start of the growth of the Chinese after the unification and formation of the People’s Republic of China. China for long pursued aggressively the policy of Communism. The ‘open door policy’ adopted and subsequent economic reforms in 1978 marked an important chapter in transformation of the economy. Today China is the world’s second-largest economy by both nominal total GDP and purchasing power parity; these will form an important factor in our export market potential (Fairbank and Goldman 10).

We are looking at a GDP (per capita) of $11,868 and nominal GDP of $ 6,959 according to the latest figures.  These figures point to a steep increase in living standards due to the high and equalized buying power.   This alludes to an available market.

Demand for American products has significantly increased in China. These range from technological items, works art including literature and theatre, movies, agricultural produce, non-food raw materials, mineral fuels, lubricants, beverages and tobacco, machinery and equipment, light and textile products,  expatriates, chemicals and allied; among others.

The ability to buy quantified above and the large population alludes to an available market. China on its own produces a large number of these products; hence, it would require strategic leveraging of the export material to compete against the local production machine. Albeit, some of the products are not available locally and their uptake might be effortless to achieve, say American movies.

Accessibility of the target market will include how the actual product reaches the country and eventually getting to the final consumer. The country should have seaports or airports for external access. Freight is transported by rail, road or even air transport.  China has with start of the late 1990’s developed superior national highways and expressways reaching a total of 85,000km of highways.  China also has the largest railway network in the world (i.e. 103,144 km) including a high-speed rail system. The airport system is also extensively developed. For instance, Beijing Airport ranks second largest in passenger transport.  China has accessible seaports, which are among the world’s most busiest. The country also has the highest concentration of mobile phones/devices per area, large population accessing the internet and TV services. This is key for purposes of ads.  Hence, any export material is sure to reach the country or the consumer.

China’s growing economy and huge population make the case for expandability of the market. Growing economy means more people are able to buy while large population means an exporter can rely on linear expansion of sales.

China is very stable. Save for recent demonstrations demanding increased freedoms of expression, the country’s political atmosphere is largely cool and the people not charged. The country has also adopted an open door policy unlike previous communist regimes.  Economic zones mapped some time back have become major centers for export and import businesses.

The cultural divide in China is almost uniform. The largest ethnic tribe, Han Chinese constitutes about 90% 0f the population alongside 55 other ethnic groups.   About 292 languages are spoken in China but the standard Mandarin language is spoken across the cultural divide. Many people still practice Confucianism and conservative philosophies.  There are as many religions as there are people in the country. For purposes of business, the people are no extremists and are just accepting as any normal market.

Works Cited

Fairbank, John King and Merle Goldman. China: A New History, Second Enlarged Edition. Havard: Havard University Press, 2005.

Kumar, Aseem. Export and Import Management. New Delhi: EXCEL BOOKS, 2007.