International Trade and Institutions Research Paper

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A. Prepare a written business plan of no more than 3000 words for a firm of your choice from your country or any other country other than China that involves in either purchase office in China or a production site in China in order to get Chinese products to your home country or other countries. This report has to explain why either a purchase office or a production site is chosen by comparing advantages and disadvantages of international trade and FDI. In addition, this report has to compass the following:
1. A business opportunity analysis an analysis of any absolute or comparative advantages underlying the opportunity, and a comparison of the potential market size, estimated start-up costs, and risks.
2. An environmental analysis incorporating the economic, political, social and cultural environment, including formal and informal barriers to trade influencing your proposed market and your proposed production location.
3. A competitive analysis incorporating an assessment of your firm?s major potential competitors, the source of their competitive advantage and their strategies.
4. A strategic analysis identifying your firm?s core competency and source of competitive advantage and recommending an international strategy, mode of entry and the location of each stage of the value chain.

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