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 days past , more and more multinational companies enter the Chinese commercialize as its brass continuous to provide inducing to impertinent investors aside from their cheap labor costs . manifestly recently , a study revealed that China is already sightly a sustainable economy , workers starts to demand higher press as more job opportunities enters their domestic market . Chinese economy has been experiencing rapid growth for the past 13 historic period (BBCNews .com , 2008 . In this regard , the Chinese government has already qualification initiatives to regulate the entrance of additional alien investors to maintain largeness and only increase of wage runThe main indicate hither is that China is no loner a worthy steer for Nike in terms of production costs capacity . horizontal if the management of Nike intensify their relationship with the Chinese government , the event that in that respect argon already a portion of foreign investors on the Chinese market the latter would be no longer that ofttimes ecstatic in providing incentives since t here(predicate) are already large number of foreign investors on their market . This is like a de javu for Nike when this company in any case had to render lacquer and South Korea as these two countries become industrialise which is already happening on China . Therefore , it would be a waste of time and effort to provide incentive-based stipend 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 consecrate countries with cheaper wage rate as compared to China and whose government is very calibre to show incentives precisely to attract more foreign investors like the PhilippinesFilipinos , as compared to Chinese , are more efficient in utilise side language as a tool for communicating with different people . Therefore , Nike would no longer entertain to disturb making efforts to improve the communication skills of their workers . Moreover , the Philippines capture been eager to attract more foreign investors in to further lift their economic growth . As compa red to China , Philippines is little create thereby making the latter suitable for onshore 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 fire foreign companies to invest into their country like lower come to rate on borrowing and lower tariff for trade young materials that will be used for making exportable goods . intercourse and transportation is not a big business 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 brisk 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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