Question

1a. What is the "one country, two systems" approach of China? How did it come about? How is the concept doing today?

1b. Describe and explain the four phases of the international planning process. Please provide example (s) when suitable.

1c. Describe the five characteristics of an innovation that assist in determining the rate of acceptance or resistance of the market to a product. Please provide examples.

1d. What has become the primary vehicle for doing business in many foreign countries? Explain and justify your answer with example(s).

1e. What are the various techniques that can be used to motivate middlemen? Please illustrate your answer with examples.

Answer 1

1a.

One country two systems approach of China refers to the greater China (at least so called) by the Chinese government. This was introduced to include Hong Kong and Macau in the late 90s.

China themselves follow strict authoritarian policies and many of their systems are derived from the communist regime. However, Hong Kong and Macau tend to be more capitalistic and democratic in nature. Naturally Chinese government needed to explain why and how Hong Kong and Macau can be part of their country without upsetting the people of these two regions. This is when the “One country, Two systems” came into existence.

1b.

The four phases of international planning process are

Analysis and screening of the market: Before entering an international market analysis must be done properly. For example launching an alcoholic brand in Islamic countries may not be a good idea.

Defining target market: Once it is found out that the market is feasible, the company needs to define the target market. For example, after Walmart identified that Indian market may be difficult, they chose to approach the wholesale or large retail format. They defined other retailers as their target rather than the end consumers.

Development of plan: Prepare a plan to enter the international market and how to execute it.

Implementation of the plan and controlling: Once the company enters the market, manage the outputs, handle operations and control the overall system.