International Business

Running head : INTERNATIONAL BUSINESSInternational Business[Author][University]International BusinessDuring the past decades , China serves to be the target of multinational companies as a source of militant advantage in foothold of lower production be to through utilizing the cheap Chinese labor . As eld past , more and more multinational companies enter the Chinese commercialize as its government continuous to provide motivator to impertinent investors aside from their cheap labor costs . simply recently , a study revealed that China is already comely a sustainable economy , workers starts to demand higher fight as more job opportunities enters their domestic market . Chinese economy has been experiencing rapid growth for the past 13 historic period (BBCNews .com , 2008 . In this regard , the Chinese government has already qualification initiatives to regulate the entrance of additional alien investors to prevent largeness and further increase of wage runThe main point hither is that China is no loner a suitable steer for Nike in terms of production costs efficiency . horizontal if the management of Nike intensify their relationship with the Chinese government , the event that there argon already a lot of foreign investors on the Chinese market the latter would be no longer that much ecstatic in providing incentives since there are already large number of foreign investors on their market . This is like a de javu for Nike when this company also had to leave lacquer and South Korea as these two countries become industrialized which is already happening on China . Therefore , it would be a waste of time and effort to provide incentive-based salary for Chinese workers and relocate factories to Shenzhen the time for China to become an industrialized agricultural is nearly coming .

The best solution here would be to start finding separate countries with cheaper wage rate as compared to China and whose government is very calibre to give incentives precisely to attract more foreign investors like the PhilippinesFilipinos , as compared to Chinese , are more efficient in using side language as a tool for communicating with other people . Therefore , Nike would no longer have to disturb making efforts to improve the communication skills of their workers . Moreover , the Philippines have been eager to attract more foreign investors in to further lift their economic growth . As compared to China , Philippines is less create thereby making the latter suitable for offshore sourcing of Nike . In addition to this , wage rate in the Philippines is much cheaper as compared to China which could make Nike more competitive in terms of production costs . The Philippine government is also unsparing in giving subsidies and financial aids to interested foreign companies to invest into their country like lower interest rate on borrowing and lower tariff for imported young materials that will be used for making exportable goods . intercourse and transportation is not a big problem on the Philippines since vital infrastructures is available on the said countryOn the other hatful , one of the down turns of this alternative would be the existing value rate of the Philippine government...If you want to get a dear essay, order it on our website: Orderessay

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