Condom Sales to China   Term Paper ID:27406 Click to get this paper

Essay Subject: Examines the possibility of introducing a new condom product to the Chinese market. Examines the social, political, cultural, & economic issues that influence any entry into the China market.... More...

10 Pages / 2250 Words 1 sources, 0 Citations, MLA Format $40.00 Return to List of Papers

Paper Abstract: Examines the possibility of introducing a new condom product to the Chinese market. Examines the social, political, cultural, & economic issues that influence any entry into the China market. Paper Introduction: INTRODUCTION China has become a focal point for foreign investors, especially from the United States. One reason for this is the perception of a potential for incredible growth in a country with such a large and untapped consumer base. This study involves the possibility of introducing a new product into China, specifically condoms, a product that could gain the approval of the Communist Chinese leadership given the desire on their part to control the growth of the population. Investment in China is affected by social, political, and economic issues, and there are vast differences between the United States and China in all these areas which must be considered before any investment is undertaken. These various factors will be considered and analyzed as to how they affect doing business in China and of what they might mean to Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. China is also watched because of a concern about humanrights violations. Condoms are part of this program, so the populace is accustomed tohearing about this issue for birth control and will be hearing more aboutthe use of condoms to prevent the spread of disease. The highest growth has been seen in agriculture and inindustries near coastal areas. China has takendirection from Hong Kong's financial leadership and Taiwan's manufacturingsuccess to become more attuned to Western markets. intellectual property rights, notably music, computer programs, andmovies. The party has beenundermined by widespread corruption, nepotism, and other vices among partyofficials. The idea of introducing a condom product in China is one that shouldappeal to investors because of the size of the potential market, the factthat the consumer base has already been prepared for the use of such aproduct, the fact that the Chinese government encourages the use of thisproduct already, and the fact that the government will encourage the use ofthe product for another reason with the implementation of its HIV/AIDSprogram. The present constitution was adopted in 1982 andrecognizes the Chinese Communist Party as the core leadership of theRepublic, with the President having a largely ceremonial role as Head ofState. The new leaders tend to bemore technically competent in some fields while being completelyinexperienced in others. Therapid economic growth has caused problems such as high inflation, increasedbureaucracy, and corruption, so the government announced a new 16 PointEconomic Plan in 1993 to cool down the overheated parts of the economy.Clearly the economy in China is subject to strong government controls, andthe government intends to establish whatever policies and reforms arenecessary to benefit the economy. China is the third largest economy in the world and thusrepresents a tremendous opportunity, but it is also facing a number ofserious problems as it moves toward integrating with the internationaltrade market. However, the government has been concerned enough to announce through theMinistry of Public Health a program for HIV/AIDS prevention and control bythe year 2 . Taoism is based on the philosophy thateverything in the world is controlled by nature and interconnected by theying and the yang. Officials believe the best way to establish economic controlis to deepen the process of reform, part of which involves allowing greateraccess to the national economy for foreign trade and investment, thusdiminishing China's long-standing philosophy of restricting importsubstitution formerly used to maintain self-sufficiency. The leadersof today lack the stature of a Mao or a Deng. andChina because of human rights violations after Tiananmen Square and becauseof the need for Congress and the President to reaffirm China's trade statuseach year. The state has also offeredrewards for those who practice birth control and placed restrictions onothers as incentives for birth control. Still, the trends at this time are conducive for investment. The long-termeffect of such practices remains uncertain. The highunemployment rate, however, is beneficial to investment and development,and any work is appreciated and sought after. Many business people in China speak some level ofEnglish, but it is still advantageous to speak the local language becausethe effort puts foreign investors in a different light. The generalcohesion of the Chinese people makes it easier for a Chinese-American to dobusiness than for a typical Caucasian. China isa Communist nation and has no official religion, but there are religiousgroups because suppression of religion in China has not been strong.Taoism and Buddhism are predominant, with only 3 to 4 percent followingMuslim or Christian beliefs. Population growth is more controlled in urban centers than inrural. Introducing theproduct could be a wise move if the product can be shown to be moreeffective than current methods and products. One important concern has been China's use of prisoners,including political prisoners, as labor, and the U.S. The unemployment rate in urban areas is seen as high at 2.7 percent.The inflation rate from 1993 to 1994 was high. Few womenhave been able to achieve integration in business. The government has been warned by scientists that this maybe the last chance to control the spread of the disease, and the planincludes the establishment of a nationwide HIV/AIDS monitoring network withsome 4 clinics and the creation of an advanced national HIV/AIDSlaboratory along with modern laboratories in all provinces, autonomousregions, and municipalities. The problem of AIDS has not passed China by,either, though the incidence is low relative to the size of the population. Both fit with certain Communist beliefs. Contraception is the chief method of birth control, and Chinaadvocates comprehensive contraceptive measures and offers contraceptivedevices or drugs and technical guidance. INTRODUCTION China has become a focal point for foreign investors, especially fromthe United States. Methods of distribution also have to be examined, and the governmentitself may be a primary source given that it currently distributes birthcontrol devices for free to the public as part of its population controlsystem. These various factors will be considered andanalyzed as to how they affect doing business in China and of what theymight mean to the proposed introduction of condoms as a consumer product inChina. Males are preferred forworking in the fields and for giving the family a higher status. Underemployment has beendiminished by the decentralization of government control. Much more data is needed and should be ascertained as soon aspossible to assure that this is a viable investment, as it seems to be now. Population problems have also been given much attention, of course,and population control has become a key issue in the economic and socialdevelopment of the country. The Communist Party maintains complete political power but faces agrowing identity crisis and decay within its ranks. RECOMMENDATIONS While there are potential risks for investors in China, suchinvestment is recommended at this time. does not want to buyprison goods on the international market. The social barriers are not insurmountable. Coastal industries have benefited from the Open Door policy andfrom trade and business from Hong Kong and Taiwan. Many factors could affect the stability of the country in the future,and among the problems to be faced are soaring crime, rising inflation,mass rural migration, and poverty. The socialist market economy adopted in 1992 is guided by free marketprinciples, but public and socialist ownership still predominate.Government's right to manage facilities and to set planned production havebeen almost completely phased out, a great benefit to foreign investors whonow have more authority in their business dealings. Another concern has been China'srefusal to do something about copyright violations for a broad range ofU.S. The Chinese government is also encouraging more foreign investment andwould be likely to be receptive to investment in this area, given thedegree to which the proposal accords with existing government policies.The market should be surveyed carefully to see the source of current birthcontrol devices, the ways in which the proposed product might be animprovement, and the degree to which the Chinese consumer could be mademore interested in the new product over the old. The political structuremay give one a cause for concern, but China at this time has one of themost open Communist markets. Various industries have gained strength,such as textiles, garments, toys, machinery, petroleum, telecommunications,and weapons systems. Anotherfactor is the extent of external debt, and China's external debt appears tobe within acceptable parameters, with a debt service ratio averaging 8.76percent over the last nine years, a ratio that has decreased steadily from1989 to 1996. Many hope that Hong Kong will have even moreinfluence in the future and that China's political system will tend moretoward openness and democracy, but such an eventuality is anything butcertain. There are several small opposition groups which might usesocial problems to further their ends in the future. The government has in recent years been focusing more on making moneythan on politics, and in 1992 the National People's Congress embarked on anew period of economic reform and accelerated economic growth with aprogram called a "socialist market economy." The Chinese economy did grow12.8 percent in 1992, improving the climate for further investment. There are benefits to investing inthe Chinese market, if the investor gives careful consideration to allinfluences. It also abolished the right to strike and excluded freedom ofspeech. China has implemented a program of familyplanning and the strict control of population growth, promoting latemarriage and childbirth. Therecent return of Hong Kong to China will also be likely to have someeconomic effect, though the nature of that effect remains to be seen. China has used government decrees and the force of law toprevent families from having more than a set number of children in order toreduce the population growth. Banking practices have also seen reforms, and one proposed reform isto transform specialized banks into truly commercial banks, with thePeople's Bank of China to supervise the banks, each of which will still beresponsible for profits and losses. These are problems that China has to face as doother nations. Buddhism teaches that suffering is experienced becauseof personal desires. There isa disdain toward women's rights that begins at birth, when many femalebabies are left to die or dropped at an orphanage. Work Cited"China: Population and Family Planning." New Star Publishing: Countries of the World (January 1, 1991). ECONOMIC ISSUES In the domestic and international markets that are of importance toChina, trends in each have affected the overall economy of China.Investors can use several measurements to determine the stability ofChina's economy. SOCIAL-CULTURAL ISSUES The Chinese population stands at 1.2 billion and is highlyhomogeneous, with nearly 92 percent being Han Chinese, or native Chinese.The remaining 8 percent consists of various provincial groups in areas thatare still part of China, such as Manchu, while others are from Tibetan,Mongolian, and Korean descent. There has been heightened tension between the U.S. China has a reserve covering nine months. Foreigninvestment has grown until it surpasses a reported 1 billion U.S.dollars. Couples are urged to have only one child.Implementation of this program is not uniform given the size of thecountry. Language is a problem in some of the more remote areas of China.There are eight recognized languages in China, the most common beingMandarin and Cantonese. Reserves are a factor indicating a nation's credit worthiness, andgenerally a country's reserves should cover an average of at least threemonths of imports. Chinese society is marked by a strong work ethic, but the country isalso beset by problems of child labor and ill-treatment of women. The government hasoften bailed out failing businesses and kept government businesses runningeven at a loss out of fear of social and political unrest. Agriculture currently represents 3 percentof GDP. This shows that the demand for products producedin China is growing, though not without such negative effects as increasingthe authority of local officials and plant managers in industry and thecontrol of individual farmers. China has had a turbulenthistory, and this also means that its future is unpredictable. POLITICAL ISSUES Political unrest has been marked in recent years but has also beensuppressed, as at Tiananmen Square in 1989. However, China has not been immune to the problem ofhyperinflation because Communist countries hold down prices of basic goodsto a fraction of their market value. China's Gross Domestic Product has shown an average growth from 1989to 19945 of about 11 percent annually, and from 1994 to 1995 growthincreased 1 .9 percent. Investment in China is affected by social,political, and economic issues, and there are vast differences between theUnited States and China in all these areas which must be considered beforeany investment is undertaken. FEASIBILITY OF CONDOMS IN CHINA Condom use in the western world has two primary purposes--theprevention of pregnancy, and the prevention of sexually transmitteddiseases, notably HIV. This study involves the possibility of introducing a new productinto China, specifically condoms, a product that could gain the approval ofthe Communist Chinese leadership given the desire on their part to controlthe growth of the population. Religious beliefs do not have a strong influence on business. One reason for this is the perception of a potentialfor incredible growth in a country with such a large and untapped consumerbase. China seems to have made a smoothtransition in the post-Deng era, and China is currently being watchedclosely by the world community because of concerns about how Beijing willtreat Hong Kong. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.