City Analysis

a. Beijing is a National metropolis and is the second largest city in China. It was constructed and formed around a central axis, meaning the city was expanded around the city. The central axis was based off the capitals of previous Dynasty's. Since Beijing is the heart and center of China. It has now expanded to include the north and south axis facing mainland China.

b. Since Beijing is a national metropolis, a lot of its iconic structures such as the Olympic Stadium, Water Cube, large department stores would not be found in smaller regional cities. In addition to having key structures, Beijing offers a wide array of services to meet the demands and needs of its citizens. Some things smaller cities have that Beijing does not, is agriculture, farming and other smaller commodities.

link: http://ars.els-cdn.com/content/image/1-s2.0-S014362280600018X-gr6.jpg

Vehicle Market executive summary

    The multinational vehicle producer will continue its direction of international expansion and enter the Chinese market. With the middle class continuing to emerge and rise in income, the vehicle producer has an opportunity to profit off of China's developing economy. The vehicle producer will focus targeting the middle class and marketing its sedans. Also as the economy continues to prosper, the high income class of China is demanding more luxurious goods and transportation. Therefore there is an excellent opportunity for the vehicle producer to market its high-end limousines and establish its product early on in the market. Location will be extremely important in distributing the vehicles; the vehicle producer will target key cities such as Beijing, Shanghai and Chongqing. Trucking will be the main mode of transporting the containers from ports to the key cities. To avoid risk of fraud the vehicle producer should be cautious when hiring trucking firms.

Trade Strategy between China and India

 a.  What would the outcome be when the two most populated countries join together in a trade union? So far there are only theoretical opinions on the merger but in the years to come the world will experience first hand on the impact of these two giants. Together the two nations have agreed to launched its 12th five year plan to continue to develop its infrastructure. Beijing has continued to encourage its domestic Chinese firms to invest in India's market. India has opened its market to Chinese entrepreneurs, particularly in its pharmaceutical and telecommunications industry. The two countries are planning on forming a bilateral trade to greatly increase the economic activity of the two. When China and India compete with one another, both countries lose. However when the two join hands in a bilateral trade agreement, both countries gain significantly. The most important incentive in encouraging trade between the countries is to lower China's surplus with India.

b. The merger of the two giant markets will bring prosperity to both countries. India has a great opportunity to attract Chinese investors and further develop its infrastructure. It will be interesting to view the Law of One Price take place between the two markets. Currently trade between China and India is heavily unbalanced which is evident in the trade surplus. However as the countries open their markets up to each other, prices should meet in equilibrium. The equilibrium of prices will balance out the trade surplus and leave both countries better off in the long run.

c. Political and economic interest led to this prominent situation. Both countries seek to develop its infrastructure. The best solution is to continue encouraging domestic firms in both countries to invest in each other. Only time will move the markets of China and India forward. By establishing a bilateral trade agreement, the economies of both countries will become accessible which will decrease trade expenses on both sides.

link: http://www.chinadaily.com.cn/bizchina/2013-05/22/content_16518339.htm

The Box: how the Shipping Container

   a.   A container is simply a over sized aluminum box, its only purpose is for storage. I was astonished to learn how drastically containers changed the overall market in terms of competition. Due to the container's large storage size, different countries were able to export or import a variety of goods. For example before containers, it would have taken months for ships to deliver certain products such as oranges from Brazil to the United States. In the modern world, containers have greatly influenced competition among international and domestic firms. Domestic firms "who sought only to serve their local clientele, learned that they had no choice: like it or not, they were competing globally because the global market was coming to them. " Containers also lowered shipping costs, and as a result high-cost producers lost their advantage in physical proximity. 

b.    The author states that the importance of containers to the world is impossible to measure. There is no data to measure the drastic changes in costs that containers brought to the world. However "it seems clear that the container brought sweeping reductions in the cost of moving freight." Reductions of shipping costs have brought tremendous variety of products in our market places. Having variety is an important aspect to a countries growth because it gives consumers a greater range of products to purchase. Low Shipping costs have allowed countries to flourish and become integrated to the world.

c.  Consumers and international firms have gained from containerization. Low shipping costs have brought so much diversity for consumers to choose from. However the diversity in products have also increased competition for domestic and international firms. Due to the increase in competition local firms are faced with losses, simply because they do not have the resources to compete with an international firm. 

Marketing French Economy to China

   The increasing change in consumer demand have shifted China's economy away from infrastructure investment towards domestic consumer demand. In addition to this change in economic preference, it is expected to generate growth for other industries in the near future. France acknowledged China's fast growing market and saw an opportunity to market its economy for future investments. Therefore France is hoping to get a head start in growing sectors such as health care, agricultural products, food and beverages, and services that will aid urbanization. Currently China is one of the premier leaders in these sectors and is a significant source of future growth. Frances exports to China consist mainly of luxury goods, aircraft and nuclear energy sectors. Due to the opportunity that will come with China's economic reform and development, it has opened up new opportunities for French companies. An incentive to attract the Yuan, French officials have announced that it will make Chinese business travelers, tourists and students to visit France.

   The increase in demand for the Chinese Yuan will shift the demand in the French Market to the right. This shift will cause the Yuan to appreciate in value and therefore cause the Yuan to hold more purchasing power.

  The increase in the demand for Chinese cash was caused by France recognizing the opportunity to further develop specific sectors within its economy. China has been a prominent leader in growth and continues to have record growth rates. Perhaps a resolution to the demand of Chinese cash can be solved by France proposing a free trade agreement. This incentive will give China an opportunity to trade more freely with the European nation as it could use France as a gateway.

Link: http://www.nytimes.com/2013/05/07/business/global/officials-market-french-economy-to-china.html?ref=china

Part Five : Transportation

1. Water Transportation
      a. Tianjin Xingang is the closest port to northern Beijing. It is located approximately 180 kilometers away from Beijing. The easiest way to get to the port is by train or bus. The Tianjin port is the largest sea port in north China. It connects with over 20 ocean routes and with 170 countries/regions around the world.

     b. Other major ports in China include Beihai port, which is a major commercial port located in Guangxi Zhuang. It serves as a important gateway to foreign trade for guangxi. The Dalian port is a very important water-rail inter model transport juncture and also the largest commercial port in northeastern China. Ningbo port is the largest commercial sea port in the Zhejiang province. It is an important port connecting Northern and Southern China.

2.Land Transportation
     a. The Silk Railroad of China is one of the most important freight railroads in China, it connects mainland China to Europe. The international freight-train network has significantly reduced transportation costs for multinational companies trading in China to Europe. For an example Hp has recently utilize the reduced cost of transportation and have been actively shipping printer ink, laptops and other electronic components.

   b. The major mode of transportation in China is rail. The railroad system has been critical to the country's economy, it carries 24% of the worlds railway transportation volume. It has been a significant contribution to the country's economy, currently the railroad system in China is the third largest rail system in the world.

  c. The most famous roads in China is the Burma Road which leads southwest from Kunming to the city of Lashio. Since its completion the government has put a strong emphasis on building highways that extend across China. Today, China's road system is still developing, as the country continues to build highways that extend across the country. China has national highways that connect the four corners of its mainland.

3. Air Transportation
   a. in the early 2000's the government of China combined the nine largest airlines into three regional groups located in Beijing, Shanghai and Guangzhou. The three largest international airports are Air China, China Eastern Airlines and China Southern Airlines.

   b. The country has more than 500 airports of all types of operations that span across the country. There exists six other major airports separate from the three largest airlines. These are Hainan Airlines, Shandong Airlines, Xiamen Boeing from the USA, and Airbus from France.