International Business

Running head : INTERNATIONAL BUSINESSInternational Business[Author][University]International BusinessDuring the past decades , China serves to be the target of multinational companies as a source of activist advantage in foothold of lower production be to through utilizing the cheap Chinese labor . As eld past , more and more multinational companies enter the Chinese commercialize as its brass continuous to provide motivator to impertinent investors aside from their cheap labor costs . only if recently , a study revealed that China is already pretty a sustainable economy , workers starts to demand higher press out as more job opportunities enters their domestic market . Chinese economy has been experiencing rapid growth for the past 13 diachronic period (BBCNews .com , 2008 . In this regard , the Chinese government h as already qualification initiatives to regulate the entrance of additional alien investors to go on largeness and bring forward increase of wage runThe main come out hither is that China is no loner a fitted steer for Nike in terms of production costs efficacy . horizontal if the management of Nike intensify their relationship with the Chinese government , the event that in that respect argon already a skunk of foreign investors on the Chinese market the latter would be no longer that lots ecstatic in providing incentives since t present are already large number of foreign investors on their market . This is like a de javu for Nike when this company besides had to take into account lacquer and South Korea as these two countries become industrialised which is already happening on China . Therefore , it would be a waste of time and effort to provide incentive-based profit for Chinese workers and relocate factories to Shenzhen the time for China to become an alter agricultural is nearly coming .

The best solution here would be to start finding sepa direct countries with cheaper wage rate as compared to China and whose government is very calibre to exhibit incentives precisely to attract more foreign investors like the PhilippinesFilipinos , as compared to Chinese , are more efficient in utilize side language as a tool for communication with early(a) people . Therefore , Nike would no longer wipe out to disturb making efforts to improve the communication skills of their workers . Moreover , the Philippines sop up been eager to attract more foreign investors in to further lift their economic growth . As compared to China , Philippines is slight create thereby making the latter suitable for offshore sourcing of Nike . In addition to this , wage rate in the Philippines is much cheaper as compared to China which could make Nike more competitive in terms of production costs . The Philippine government is also unsparing in giving subsidies and financial aids to arouse foreign companies to invest into their country like lower quest rate on borrowing and lower tariff for import young materials that will be used for making exportable goods . intercourse and transportation is not a big bother on the Philippines since vital infrastructures is available on the said countryOn the other hatful , one of the down turns of this alternative would be the animate value rate of the Philippine government...If you want to get a dear essay, order it on our website: BestEssayCheap.com

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