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Background and Orientation
Is it smart to source Nike Shoes in China? Well in order to formulate an answer to this question, we must take many things into consideration. One of the most important things in a foreign country is its cultural orientation. And in order to engage in proper business practices with countries outside of our own, we must consider a number of these cultural factors. We must look at the entire history of the country and investigate its business relations with the United States. We must also take a closer look at the people residing in the country and become familiar with some of their customs and traditions. With this information, we can better understand the Chinese culture and compile sourcing information for possible future relations sourcing within this country.
Early on, China was gradually reduced after 1840 to a semi-feudal country (Elworthy, 4). The Chinese people struggled for national independence and for democracy and freedom, which lead to the historical changes that have taken place in the 0th Century. One of the most significant changes was prompted by the Revolution of 111, which abolished the monarchy and gave way to the Republic of China (Elworthy, 5). But this was not enough for the people of China; they wanted to overthrow imperialism and feudalism all together.
After numerous struggles, in 14 the Communist Party of China overthrew the rule of imperialism and feudalism, and won the great victory of the new democratic revolution and founded the Peoples Republic of China (Elworthy, 8). This is when the Chinese people took power into their own hands and became masters of their country. Upon founding the Peoples Republic, the transition of Chinese society from a new democratic to a socialist society was effected step by step. The socialist transformation of private ownership of the means of production was completed and the socialist system was established (Elworthy, ). Under this system, many successes have been achieved in economic development An independent and fairly comprehensive socialist system of industry was established, there were marked increases in agricultural production, and significant technological progress was made in the textile and clothing industry.
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Business Relations between China and the United States
U.S. business with China was extremely minimal for thirty years after WWII, but it was rekindled in the late 170s when China adopted a policy of reform and opening up. Since the initiation of this policy, Chinas economy has grown at an average annual rate of nearly %, and the number of foreign firms doing business in or with China has grown tremendously (Honneycutt, 6). According to Chinese statistics, US firms have invested over $5 billion in China- 0% of it within the last 10 years (Honeycutt, 70).
Despite these large investments and expansions, China remains a medium-sized market. Last year, their Gross Domestic Product was $1.08 trillion (Honeycutt, 71). This is about the size of the economy of Italy. Spread over a population as big as Chinas, this does not allow for much disposable income for the people of China. But since 10, US exports to China have grown almost 1% annually. Nevertheless, China consumes less than % of total US exports and US investment in China represent only a tiny portion of the total US holdings overseas. In spite of this, many journals suggest that China holds huge potential for certain American exporters (Honeycutt, 75). It is a vastly growing nation that is improving technology and labor forces. The textile industry has seen tremendous growth because of this new technology and the supply of workers.
The textile industry and relations between the US and China have also strengthened even more because of the World Trade Organization (WTO) agreement signed by both countries on April 8th, 000. This agreement brings new opportunities to both countries and the industry- some have even gone as far to suggest it as, the beginning of time for trade relations (Internet source 1). Because of this strong new trade agreement, there are more advantages than ever before for sourcing products in China. This opens up many doors for the textiles and clothing industry and allows products to be accessed easier and at a lower costs (Internet source ).
Today, China remains the fastest growing economy in the world, despite the effects of the Asian economic downturn in the late 10s and the US economic slow down in 001. China is predicted to eventually become the worlds largest economic center by the year 00 (Internet source 4).
The People
Perhaps one of the reasons that China has done so well in the clothing industry is because their own people buy their products and are loyal to their country. China has a vast land and a large population; thus a variety of religions have grown and matured in this ancient nation. The five main religions groups that reside in the country include Buddhism, Taoism, Islam, Catholicism and other Christian religions (Elworthy, 81). Confucianism, a philosophy rather than a religion, ruled China for over ,000 years, but was eventually abolished when the country changed leadership.
Among the Chinese people, there is also a strong bond between relatives and the ideology of family. The Chinese society was composed of families rather than individuals, and that is why today the family is considered the principal focus of economic, social, and religious activities (Internet source 1). Adhering to these traditional family centered principles, the extended family in China is the first place to which people turn when they find themselves in trouble. Along with these family issues, the people of China place a lot of emphasis on the way in which they dress together. They use apparel to express their emotions and evoke ideas in many of their family rituals and ceremonies. They link apparel and aesthetics to the number one issue their country is centered around- the family (Elworthy, 5).
Culture and Etiquette
China is known as a state of etiquette and ceremonies. Chinese have many traditions that come from 000 years of history and nowadays are rarely used. Bowing, as to convey respect to the higher level, is often used still by the lower like students and attendants (Internet source 4). However, present Chinese youngsters tend to simply nod as a greeting. It is also a common social practice in China to introduce the junior to the senior, or the familiar to the unfamiliar (Internet source 5).
Something that is undying in the Chinese culture is the practice of giving gifts as a courtesy. As is common in Western cultures, it is appropriate to give gifts on occasions such as festivals, birthdays, or weddings (Internet source ). If you are invited to a party, small gifts like wine, candies and fruit are welcomed along with other adornments such as pastries and flowers. There are a few gift giving etiquettes that are different from Western Culture, such that black and white are connected with death and sorrow, and therefore should not be colors you choose to give. Sometimes, issues such as these should be taken into consideration when producing products in China.
Conclusion
Throughout the contents of this report, we looked at the history of China and investigated its business relations with the United States. We also took a closer look into the people residing in this country and became familiar with some of their customs and traditions that are similar to some of our Western Culture traditions. Using this information, we get a better understanding for the Chinese culture and the future of business institutions housed in this countrys textile industry. We can see that China has expanded their country through growth in the textile and apparel industry and are now one of the leading producers of world exports. Many items that are produced in China are done so extremely efficiently and then sourced to different countries like the United States. I think from history to present, there is considerable growth within this country that is expanding almost daily. It is predicted to be the worlds largest economic center in 00 (Internet source 4), so I think it would be extremely wise to source Nike Shoes from this vastly growing country.
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