Marketing: International Trade and China Briefing Essay

Submitted By nanatammie65
Words: 770
Pages: 4

Colorado Technical University
Dr. Pressley Rankin
Individual Project 1
By Tammie L. Johnson
August 25, 2013

Abstract As a marketing member of this furniture business we need to make sure that all of our supplies can get to the factories overseas. If we have a hiccup in this, then it’s our job to figure out what is going on and make the situation better, our furniture company depends on getting our factories the materials they need to keep the inventory up. This presentation will cover the global strategies, the concern that China has laws and regulations that will hinder our company, and what the impact it will have on the global market.

In 2002 a furniture business was started by John Ferrer and wife Deborah, for some time this company flourishes and became a well-known corporation that has 10 distribution and manufacturing plants, with this said this company also serves all of the 48 States (CTU Online, 2013). Our company uses fabric that is made domestically made, but our concerns are shipping the fabric to China, with this said I have researched and this is what we have come up with to present to the owner of the company. One of the most important issues facing companies conducting trade with China is the subject of taxes and duties imposed on goods imported into and exported out of the country (China Briefing, 2013). With this said, there is three different types of taxes and duties that China has 1) Value-added tax, 2) Consumption tax, 3) Customs duties (China Briefing, 2013). Now value-added taxes are 17% with the domestic market, and 13% for other goods, this value-added tax will be due on the day of customs clearance (China Briefing, 2013). Then we have to look at the “Substantial Change” this classification is a supplementary standard for determining the substantial change this is to include the ad valorem percentage method which test the value added percentage in the manufacturing or processing carried out in the country other than the country of the original materials (China Briefing, 2013). As hard as China is trying to make things right after all the bad press they have had in the past, China or I should say Shanghai has approved free trade zone, with this said, this opens up a new beginning for small and medium businesses to trade in China, and allows us to possess our own import and export licenses as a foreign business (China Briefing, 2013). As of August 23, 2013 Shanghai, China will be opening case goods and upholstery resource lifestyle enterprises, this 35,000 square-foot showroom will open next month, China says that this will be the “Future of home furnishing sourcing in Asia” (Furniture Today, 2013). In order for our business to flourish, we need to find out what our weaknesses are, what are strengths are, what our opportunities are, and what kind of threats are out there