Statement of the problem
Today, the global business environment has become extremely competitive that any global manager has to come up with strategies to overcome the challenges. The pricing of any product that a company produces is what ensures that it makes profits or losses. In the global market, today Chinese products have proved to be highly competitive in terms of pricing as compared to American products. The low price that the Chinese products pose has caused American manufacturers a lot of revenues as many people in the global market today prefer Chinese products. This is one of the main challenges that the global managers face in their managerial work (Harney, 2008). State of the art in the topic area
“The China price” as it is normally known is one of the most worried trends in the world market today. It has been stated that China prices are about 30% to 50% lower as compared to those of other products produced by other major manufacturing countries like the United States of America. This coupled by the fact that China exports most of these products to other countries makes the issue even hard to deal with in the global market. The 2.7 million manufacturing jobs lost in the US since the year 2000 have been attributed to the China pricing factor. This, therefore, means that the managers have to devise ways to deal with products from China that currently dominate the world (Alon, 2003). Importance of this topic
The Chinese economy is quickly emerging as one of the most powerful economy in the world and any manager hoping to make it in the global scene must take into account the China price factor and devise ways of dealing with it. With exports and imports forming a major part of the global market, it is necessary for prices to be standardized. The best way to do this would be to develop mini-enterprise locations across the countries that the business operates in. This will help the countries encounter the Chinese products as they would act as micro-Chinese locations that use the same trends that the Chinese use in their production sector (Hussey & Hall, 2008).
References Alon, I. (2003). Chinese Economic Transition and International Marketing Strategy.
Westport: Greenwood Publishing Group. Harney, A. (2008). The China price: the true cost of Chinese competitive advantage. New York: Penguin Press. Hussey, J., & Hall, S. (2008). Managing global development risk. Boca Raton: Auerbach Publications. .