Advantages and Disadvantages of the China Business Model.

Need help with my writing homework on Advantages and Disadvantages of the China Business Model. Write a 2500 word paper answering; China has experienced rapid growth that has seen the country quickly grow to become the world’s second-largest luxury market in the year 2009. The attainment of a 27.5% global luxury market share caused the country to effectively surpass the United States and was able to come second only to Japan. This massive growth has been seen to be quite remarkable especially in light of the country’s market consumption in luxury products has only been in existence for a time period of approximately 20 years (Zhang and Stening, 2009). So as to be able to critically analyze the advantages and disadvantages of the business model in use in China, it is possible to individually analyze several key aspects of the model so as to gain a better understanding of the whole model in general one of these key aspects is the business model’s private economy.&nbsp.

The definition provided for the Chinese private economy as detailed by Shan (2008) is that the country’s private economy can broadly be defined as including all the various non-state-controlled and privately owned enterprises as well as the country’s own private domestic economy that can broadly be expanded to include private enterprises, the various collectively-owned enterprises as well as individual businesses &nbsp.in the country, others classified as being part of the private economy include the various enterprises that happen to have investments from Taiwan, Macau and Hong Kong. This definition of private economies is seen to essentially leave out foreign-invested enterprises in the definition. Advantages Attributed to the China Business Model as a result of its Private Economy Attribute The country’s private economy helped provide a ready labor market for the country’s growing rural labor force. According to various government statistics, the country’s over 250 thousand enterprises that happened to be privately owned as at 1988, were able to successfully absorb over an estimated 4 million labors. This private economy was able to make better use of various resources such as available surplus expertise and labor, and funds that were not being properly utilized by the country’s state government (Chen, 1995). The Chinese business model also advocates for a preference of Chinese workers over workers of other nationalities. This is highlighted by the approach taken by the country in regards to the various contracts obtained by its companies in other countries. An illustration of this factor is that, during the recent economic crisis that severely crippled the economies of several markets around the world, China was seen to be relatively unaffected as it continued to invest in several countries ranging from the Bahamas across to various countries in Africa. In a recent deal portraying the effectiveness of the Chinese business model, one of the country’s construction companies was able to sign a deal in the Bahamas that was it get contracted to build a $3 billion gambling project (Dean, 2011).