country study

country study

below you will find section 1 and 2. After that you will find the instructions for section 3. Any questions please contact me.

Country Study
Victory State Bank is a domestic organization located in New York. The organization mainly deals with provision of banking services to the people. The organization has remained in the domestic market since its six branches are all located in New York. Having grown in terms of size and operations, the organization has decided to expand its services to an international country in order to increase the number of customers that it serves. Therefore, Victory Organization will be mainly offering banking services in the international market identified.
The country that I would recommend to my CEO for international expansion is China. This is mainly because China is a country that is developing very fast and thus, if the country starts an international branch in China it will be sure to attract a large number or customers (Li, 2010).
The economy of China is indeed stable and well performing with a Gross Domestic Product of approximately 7.33 trillion (The College of Staten Island’s Modern China Studies Group, 2012). This is a very large and promising figure. Therefore, starting a new branch in the country will assure the company of positive returns. On the other hand, the GDP per capita is approximately $ 9, 100. This shows that the country is highly productive and thus, it is unlikely that the bank will make losses once it expands to China. China has a very large population of approximately 1.35 billion. Therefore, there is sufficient labor for all organizations in the country. Therefore, of the country expands to China, it will be sure not to have high labor costs, or labor shortages. On the other hand, China has established itself in export and import trade (Li, 2010). Therefore, the country has a large number of economic activities that lead to the need for banking services. Importers and exporters of products in and out of China demand banking services and thus, Victory State bank will be very beneficial to them. In addition, the large number of economic activities in China requires finances. Therefore, the demand for loan services in the country is very high. When the organization expands to this country, it will have a large number of customers demanding loan services. The infrastructure of China is also well developed and efficient (The College of Staten Island’s Modern China Studies Group, 2012). This is given by the study of China’s roads, machinery and latest technology. Recent studies show that the country has invested over $ 1 billion to enhance its transport and communication infrastructure. With developed infrastructure, the business will also thrive since operations will be smooth and effective (Li, 2010). China is made up of a large number of industries that require banking services. In addition, recent studies show that the growth rate of these industries is approximately 14.5% (The College of Staten Island’s Modern China Studies Group, 2012). This is a high figure, which assures the bank that as the industries continue to grow, the demand for banking services will increase and thus the bank will grow.
On the geographic factors of the country, the country has a climate that favors business operations all through the year. Therefore, the business is sure not to be affected by disasters such as floods and earthquakes. The environment in China has also been well conserved and thus; the organization will have a favorable environment to perform its operations with no environmental issues (Li, 2010).
China is a politically stable country and thus, issues of political instability will not disrupt operations in the organization. Since China is a communist country, it is unlikely that it faces issues such as political unrest or clashes (The College of Staten Island’s Modern China Studies Group, 2012). The regulatory requirements of establishing a business in China are also few and thus, the organization will only require a license and the minimum sum of money required in order to start a bank. The only other laws that the company will have to follow are the tax laws, and the labor and employment laws. Therefore, there are no political limitations in the country, which might hinder the company from establishing itself.
In summary, China is a very suitable country to expand an already established business. This is because; there are many benefits arising from the political and economic environments of the country. For instance, the findings show that the organization will benefit massively from the large population of China. This is because; the large population will provide cheap labor to the bank. In addition, the large population will also provide a large number of customers seeking banking services. Other benefits accruing from expansion of the business to China include political stability due to the communist government, and economic stability due to the high growth rate (Li, 2010).
A challenge that the organization might face is the high rental services. This is because with the high economy of the country, the leasing charges of buildings are very high. Therefore, establishing an area where the bank will be situated might pose a challenge on the business. The other major challenge that the bank will face is competition (The College of Staten Island’s Modern China Studies Group, 2012). This is because China is a developed country and thus, there are many other banks and financial institutions offering banking services in the country. Therefore, the competition might be very stiff and unfavorable in the initial stages of performance.
Despite these few challenges, the organization will indeed reap a multitude of benefits if it establishes the new branch in China. This is because from the findings, it is clear that the benefits are more than the challenges that the organization might face. In addition, China’s economy is very favorable for the banking industry and thus, the business will thrive quickly unlike in other countries where, such a business would stagnate in its initial stages.

It is quite evident that China’s population is rapidly increasing, leading to a state of straining its infrastructure and national resources. According to censuses that are carried out, China’s population increases by around seven million people annually, which is equal to the number of inhabitants of such a big city as, for example, London. It is believed that if the population growth remains constant for the upcoming five to ten years, there will be an increment of about 100 million citizens. The rate of the population is faster in undeveloped countryside areas, where it is very hard to find work (Zeng, 2008). However, there is a decline in the population growth, which is realized with a reduced birth rate. This growth is considered to be below replacement level; hence, the current population growth is expected to increase life; expectance. Chinese person now lives an average of 74 years.
Life expectance has reduced drastically with measures that are being taken by the federal government. There are several population control programs which have resulted in reduced families. These programs advocate for one-child households, and many Chinese citizens are adapting to this norm. Creation of an enormous hole in the social safety system of China is expected as a result of fewer male children being born. On the other hand, the Chinese population is slowly embracing the one-child policy to try and reduce the population growth. This policy is expected to save the government millions of dollars and thus improve the economy of the country. Measures to restrict couples from having many children are increasingly developing; for instance, education is increasingly becoming expensive. According to Zeng (2008), there are also increasingly expensive healthcare and poorly placed social security systems.
It is of note for any organization to research the culture, value, religion, manner, and language used by the mem

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