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Political System and Its Effect On International Business
Political System and Its Effect On International Business
Economic system and its effect on International business. According to the GDP
China's socialist market economy is the world's second largest economy, starting by this
point, China is already an interesting place to invest for business. . China’s business
freedom percentage has been increasing step by step since 2012. , it is a good
advantage to start a business there.
Legal system
If a company wants to do business in China; first, it must first satisfy a Chinese need;
second, it must be registered in this country in order to avoid corruption and protect
Intellectual Property
Now, we know how to make business with China. Let me talk about the product
that I chose for doing business with China)
our country has many advantages with coffee: First, you can export green, roasted,
soluble coffee and coffee extract. this facilitates the registration process, the quality
review process, the logistics process and the payment of the coffee contribution for the
direct delivery of coffee to the customer and / or final consumer abroad. Who can do it?
All natural or legal persons registered as exporter. you can export up to 60 kilograms of
green coffee, 50.4 kilos of roasted coffee, 23 kilograms of soluble coffee or 23 kilograms
of coffee extract
In china, the demand for this product is oriented mainly towards green coffee with the
"Made in Colombia" label, processed soluble coffee and lyophilized coffee. In China, a
market of growing purchasing power that for many years had a limited coffee culture
now is different, Colombia’s coffee differentiated and high-quality offer represents a
great market opportunity,
there are many challenges like: market access, consumer preferences, governmental
challenge, competitors like the tea and administration but Colombia is a country that
little by little has gained opportunities with china, for its quality and flavor in the coffee
thanks to the globalization China has known our coffee, china and colombia are
countries that are far from each other, and thanks to globalization the foreign trade
between these two countries is possible. However, globalization has had a negative
effect on the lives of farmers, because of globalization the work of the farmer is not
appreciated
Coffe in china
In recent years, both the production and consumption of coffee in China have been
growing at double-digit rates, and show few signs of slowing. It is estimated that China
now consumes more coffee than Kenya and Tanzania combined.
Market
According to market research firm Euromonitor, the Chinese coffee market is predominantly composed
of instant coffee. Indeed, instant coffee makes up around 99% of retail sales by volume and 98% by
value, although fresh roasted coffee is growing at a faster rate
Imports
Total coffee imports by China in 2016 came to 1.4 million bags, compared to 418,000 in 2010. There has
been a substantial increase in imports over time, growing at an average annual rate of 15% over the last
ten years.
One of the major effects of globalization on the coffee market is its impact on coffee prices with the
increased globalization of coffee, the prices have steadily dropped due to the increased production
of coffee, however there has been increased demand of coffee.
The increased demand by consumers has led manufacturers at the corporate level to cultivate and
package coffee products on a mass scale. This mass production has led to corporate domination of
the coffee industry that has seen a backlash in recent years
doing business with china is not easy, the entrepreneur needs to understand that culture so different
however, china is a good market for this product because the consumption of coffee has increased a lot
even having the great competition of the coffee in the Asian countries as it is the tea. the legal export
and import system in china has improved since 2012. the Chinese market has gradually become
interested in our coffee increasing its demand for this. Our country makes delicious coffee with good
quality and China loves our coffee, it is perfect.