China Presented by: Presented to: Pandora

Mathematical location- 35N 105ESituation-Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea, between North Korea and VietnamFormal region- Eastern AsiaFunctional region- China Sea

Location

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 AnalysisCountryName

Population Growth

HDI Life Expectancy

Literacy Per Capita GDP

China 0.47 0.663 73.0 93.3 7,513

India 1.41 0.622 64.7 66.7 3,727

Mongolia 1.49 0.519 66.8 97.3 3,290

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.

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.

Economic Development

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: Transportation

Country Name

Roadways Railways Waterways Airports

China 3,583,715 km 77,834 km 110,000 km 502

India 3,320,410 km 64,015 km 14,500 km 352

Mongolia 49,250 km 1,810 km 580 km 46

Infrastructure: Communication

Internet usage and cell phone usage information was unavailable in Mongolia so a graph isn’t shown.

TaxesCountry Name Taxes

China Income taxes start at 5%House Property tax is 1.2-12%

India Income taxes are 0-30%Property tax is caculated

Mongolia Income tax is 10%Property tax is .6%

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.