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China . Presented by : Presented to: Pandora. Location. Mathematical location- 35N 105E Situation- Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam Formal region- Eastern Asia Functional region- China Sea.
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China Presented by: Presented to: Pandora
Location Mathematical location- 35N 105E Situation- Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and Vietnam Formal region- Eastern Asia Functional region- China Sea
Demographic Transition The way natural increase rate increases is by the birth rates and death rates. If the birth rates are high and the death rates are low then the NIR goes up. China is just about to enter stage 3 the perfect stage for manufacturing. The only thing inhibiting it is the percent of secondary workers. There is plenty of land in China to farm so the leftover effects of the agricultural revolution are still in play. With of course the industrial revolution has made manufacturing much more effective so China has adopted manufacturing and there are now many people looking for jobs in the manufacturing field.
Demographic Analysis The people in China live the longest, and are very educated. So they can work longer and do more difficult tasks with out pay raise. Their population growth is a lot smaller then India and Mongolia so there won’t be people to do the jobs in the future. The Chinese earn more money so they would have to be paid more.
Economic Development • Agriculteral-39.5% • Manufactoring-27.25% • Services-33.25% Because there are so many people in China there are still hundred thousand manufacturing workers that need jobs. The labor is cheep. And because China is almost in stage 3 it will be in stage 3 for a longer time and your investment will be long term.
Site Factors: Land and Labor • Labor costs $0.64 an hour in a factory vs. $21.11 in the United States(as of 2002). Income Tax starts at 5% in China • The cost of land is unknown.
Site Factors: Resources • Resources needed to make Pandora bracelets are: • Assorted metal • Petroleum for energy • Glass • Plastic for shipping This is a bulk reducing company, so it will be cheaper to distribute the products.
Situation Factors • Distance To: • USA 8,000 miles • Europe 4,500 miles • United States :Air 5-40lbs $8.50/lb 40-100lbs $6.50/lb. 100-150lbs $5.00/lb. 150-1000lbs $4.50/lb. > 1000lbs $2.50/lb. Ocean 20’ container $3800 40’ container $5000 *LCL > 1 Pallet $750 > 1 Pallet $550/pallet • Europe: unavailable
Infrastructure: Communication Internet usage and cell phone usage information was unavailable in Mongolia so a graph isn’t shown.
Social Stability China is a communist country. They promised many freedoms but have not lived up to many of those promises some that have been broken include freedom of press and freedom of speech. Even though it is a communist country there are still some elections. China has strict laws. The most famous is the one child policy. There is inhuman punishment for law breaking. Because it is a communist country there are many chances for a leader to become corrupt. That is why they created a Legislative, Judicial, and Executive branches.
Conclusion China is not very close to the markets so the cost of shipping is high. Although the labor is very cheep. The communist leaders might be able to take over the factory although it is not that likely. There are lots of phone and internet connections so headquarters could easily stay in touch. There are many forms of transportation and many waterways, roads, railroad tracks and airports. The taxes are low. And finally there are lots of workers. The good out ways the bad. China would be a good place to locate a factory.
