Miss

Saowapa Sawasdeemongkol
ITM #4 57920240

International Marketing
Developed Country

Singapore
Population: 5.4 million
GDP (PPP): $348.7 billion
4.1% growth
5.2% 5-year compound annual growth
$64,584 per capita
Unemployment: 3.1%
Inflation (CPI): 2.4%
FDI Inflow: $63.8 billion

Economics
Singapore has a highly developed and successful free-market economy. It
enjoys a remarkably open and corruption-free environment, stable prices, and a per
capita GDP higher than that of most developed countries. The economy depends
heavily on exports, particularly in consumer electronics, information technology
products, pharmaceuticals, and on a growing financial services sector. The economy
contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1%
in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a
result of soft demand for exports during the second European recession. Over the
longer term, the government hopes to establish a new growth path that focuses on
raising productivity. Singapore has attracted major investments in pharmaceuticals
and medical technology production and will continue efforts to establish Singapore as
Southeast Asia's financial and high-tech hub.

Mode of entry
Exporting
Singapore is generally a free port and an open economy. More than 99% of all
imports into Singapore enter the country duty-free. For social or environmental
reasons, Singapore levies high excise taxes on beer, wine and liquor, tobacco
products, motor vehicles and petroleum products. This type of mode of the entry is to
do marketing and direct sale of domestically goods in Singapore to reaching the
markets. Exporting is low-control strategies provide the least control over foreign
operation.

Miss Saowapa Sawasdeemongkol

ITM #4 57920240

Partnership
The partnership type of business structure attempts to address the limitedexpansion constraint faced by a sole proprietorship by allowing two or more people to
establish and co-own a business. A partnership firm has no legal existence separate
from its partners. It comes to an end with death, insolvency, incapacity or the
retirement of a partner. Further, any unsatisfied or discontent partner can also give
notice at any time for the dissolution of the partnership. A partnership type of
business structure may make sense only in very limited number of situations. We
generally dont recommend this type of business structure to business owners.

Partnerships in Singapore can be of three types:

General Partnership
Limited Partnership
Limited Liability Partnership (LLP)

Recommend to entrepreneurs
Deciding on the right business structure to incorporate in Singapore will
depend on particular situation and plans. If your business involves selling your
services by way of the profession you hold (e.g. accountant, lawyer, architect,
etc.) and the business have one or more additional partners in a similar
profession and would like to build a joint practice, setting up a LLP might be a
suitable business structure.

Developing country

Lao People's Democratic Republic

Population: 6.8 million
GDP (PPP): $20.8 billion
8.2% growth
7.9% 5-year compound annual growth
$3,068 per capita
Unemployment: 1.4%
Inflation (CPI): 6.4%
FDI Inflow: $296.0 million

Miss Saowapa Sawasdeemongkol

ITM #4 57920240

Economics
The government of Laos, one of the few remaining one-party communist
states, began decentralizing control and encouraging private enterprise in 1986. The
results, starting from an extremely low base, were striking - growth averaged 6% per
year from 1988-2008 except during the short-lived drop caused by the Asian financial
crisis that began in 1997. Laos' growth exceeded 7% per year during 2008-13. Despite
this high growth rate, Laos remains a country with an underdeveloped infrastructure,
particularly in rural areas. It has a basic, but improving, road system, and limited
external and internal land-line telecommunications. Electricity is available in 83 % of
the country. Laos' economy is heavily dependent on capital-intensive natural resource
exports. The labor force, however, still relies on agriculture, dominated by rice
cultivation in lowland areas, which accounts for about 25% of GDP and 73% of total
employment. Economic growth has reduced official poverty rates from 46% in 1992
to 26% in 2010. The economy also has benefited from high-profile foreign direct
investment in hydropower, copper and gold mining, logging, and construction though
some projects in these industries have drawn criticism for their environmental
impacts. Laos gained Normal Trade Relations status with the US in 2004 and applied
for Generalized System of Preferences trade benefits in 2013 after being admitted to
the World Trade Organization earlier in the year. Laos is in the process of
implementing a value-added tax system. Simplified investment procedures and
expanded bank credits for small farmers and small entrepreneurs will improve Laos'
economic prospects. The government appears committed to raising the country's
profile among investors, but suffered through a fiscal crisis in 2013 brought about by
public sector wage increases, fiscal mismanagement, and revenue shortfalls. The
World Bank has declared that Laos' goal of graduating from the UN Development
Program's list of least-developed countries by 2020 is achievable, and the country is
preparing to enter the ASEAN Economic Community in 2015.

Mode of entry
Foreign direct investment (FDI)
In the last recent years, foreign investments in Laos grew significantly. This
FDI flow was relatively spared from the global economic crisis since main investors
(Thailand, China and Vietnam, in particular) were only slightly affected by the crisis.
Most sectors are open to foreign investment. However, there are still some
remaining barriers to attract FDI, especially the length of time invested in the
procedures to obtain the required authorizations, inequalities in terms of tax benefits,
the high cost of some applied tariffs and the weakness of infrastructures.
The transportation infrastructures, tourism and large agro-forestry projects are
also attracting new investors. The main investing countries are Laos' large neighbors:
Vietnam, China, Thailand, followed by France.

Joint venture
A joint venture is a foreign investment established and registered under the
laws and regulations of the Lao PDR and which is jointly owned and operated by one
or more foreign investors and by one or more domestic Lao investors. The
organization, management and activities of the joint venture and the relationship
between its parties shall be governed by the contract between its parties and joint
ventures. Foreign investors who invest in a joint venture must contribute a minimum
portion of thirty percent (30%) of the total equality investment in that venture. The

Miss Saowapa Sawasdeemongkol

ITM #4 57920240
contribution of the ventures foreign party or parties shall be converted in accordance
with the laws and regulations of the Lao PDR into Lao currency at the exchange rate
then prevailing on the date of equity payments, as quoted by the Bank of the Lao
PDR.

Recommend to entrepreneurs
Laos is viewed as a country aiming to be the battery of Asia because of its
rich hydroelectric resources. In second place was mining with an investment value of
US$3.2 billion. Services, agriculture, and the industry and handicraft sector are the
third, fourth and fifth largest foreign investment sectors. The most attractive sector for
foreign direct investment is investment in natural resources.

Socialist country

CHINA
Population: 1.4 billion
GDP (PPP): $13.4 trillion
7.7% growth
8.9% 5-year compound annual growth
$9,844 per capita
Unemployment: 4.6%
Inflation (CPI): 2.6%
FDI Inflow: $123.9 billion

Economics
Since initiating market reforms in 1978, China has shifted from a centrally
planned to a market based economy and experienced rapid economic and social
development. GDP growth averaging about 10 percent a year has lifted more than 500
million people out of poverty. All Millennium Development Goals have been reached
or are within reach. With a population of 1.4 billion, China recently became the
second largest economy and is increasingly playing an important and influential role
in the global economy.
Yet China remains a developing country (its per capita income is still a
fraction of that in advanced countries) and its market reforms are incomplete. Official
data shows that about 98.99 million people still lived below the national poverty line

Miss Saowapa Sawasdeemongkol

ITM #4 57920240
of RMB 2,300 per year at the end of 2012. With the second largest number of poor in
the world after India, poverty reduction remains a fundamental challenge.
Rapid economic ascendance has brought on many challenges as well,
including high inequality; rapid urbanization; challenges to environmental
sustainability; and external imbalances. China also faces demographic pressures
related to an aging population and the internal migration of labor.
Significant policy adjustments are required in order for Chinas growth to be
sustainable. Experience shows that transitioning from middle-income to high-income
status can be more difficult than moving up from low to middle income.
Chinas 12th Five-Year Plan (2011-2015) forcefully addresses these issues. It
highlights the development of services and measures to address environmental and
social imbalances, setting targets to reduce pollution, to increase energy efficiency, to
improve access to education and healthcare, and to expand social protection. Its
annual growth target of 7 percent signals the intention to focus on quality of life,
rather than pace of growth.

Mode of entry
Foreign-Owned enterprise
A foreign-owned enterprise, also call foreign enterprise, refers to an enterprise
established within the Chinese territory in accordance with the relevant Chinese laws
and with all the capital being invested by a foreign company, enterprise or other
economic organization or individual. For establishing a wholly foreign-owned
enterprise, the foreign investor must make investment in cash or equipment and the
registered capital must be commensurate with the size of operation and the social and
economic liability of the enterprise. The profit obtained and other lawful interests of a
foreign-owned enterprise are protected by Chinese laws.
Export-Oriented Processing and Assembling
In export-oriented processing and assembling, a foreign business provides raw
materials, parts, components or drawings, a Chinese business processes them or
assembles them into finished products which are returned to the foreign party for sale,
and the Chinese party charges a fee for the processing and assembling; or, the foreign
party also provides production equipment with or without a price and fund for
building the plant premises, the Chinese party collects a processing and assembling
fees. The production equipment with a price provided by the foreign party shall be
paid by the Chinese party in installment using the processing fee.

Recommend to entrepreneur
Using an intermediary agent for the entire process or handling export in
house and a local Chinese distribution partner for import and sales in China. This
method it doesnt require a large capital expenditure but provides limited control.

Miss Saowapa Sawasdeemongkol

ITM #4 57920240

Emerging country

Philippines
Population: 97.5 million
GDP (PPP): $456.4 billion
7.2% growth
5.2% 5-year compound annual growth
$4,682 per capita
Unemployment: 7.3%
Inflation (CPI): 2.9%
FDI Inflow: $3.9 billion

Economics
The economy of the Philippines expanded by 6.1% in 2014, fueled by
sustained increases in private consumption, higher fixed investment, and recovery in
exports. The pace of growth decelerated by almost 1 percentage point from the
average of the previous 2 years, largely on a slowdown in government expenditure.
Private consumption generated more than 60% of the growth in gross
domestic product (GDP) last year. Consumer spending grew by 5.4%, benefitting
from a 2.8% rise in employment, modest inflation, and higher remittances from
overseas Filipinos, which reached $27.0 billion after climbing in 2014 by 6.3%, or by
10.9% in Philippine peso terms.

Mode of entry
Joint Venture
Joint venture, within the concept of Philippine law, is organized or established
only for some transient or temporary business objective. It is often characterized as
being similar to a partnership in the sense that there exists among the joint venturers,
commonality of interest and mutual right of control, not to mention the mode by
which profits or losses are shared. Joint ventures are usually resorted to by
corporations - domestic or foreign-based - which are not allowed to form partnerships
or become partners in a partnership. Only individual, natural persons are permitted to
form partnerships.

Partnership
Under the Civil Code of the Philippines, a partnership is treated as juridical
person, having a separate legal personality from that of its members. Partnerships may
either be general partnerships, where the partners have unlimited liability for the debts
and obligation of the partnership, or limited partnerships, where one or more general

Miss Saowapa Sawasdeemongkol

ITM #4 57920240
partners have unlimited liability and the limited partners have liability only up to the
amount of their capital contributions. It consists of two (2) or more partners. A
partnership with more than three thousand pesos (3,000.00) capital must register with
Securities and Exchange Commission (SEC).

Recommend to entrepreneur
It has been speculated that the Philippines is Asia's new BIG Investment hub.
According to Japan External Trade Organization JETRO 2010, the country has a
lower average labor cost at $130 than China's $141 and $139. The country is also
entertaining special tax credits for foreign investors for special industries. It is highly
recomended that medium to large scale foreign investors have a private foreign
investor liaison (FIL) in order for them to be able to network with the perfect
professional and transparent business people, government representatives and
services. A good private foreign investor liaison is usually a person who has perfect
business connections and industry reputation. They are highly appreciated by high
networth investors when dealing with philippine government, business services (such
as law firms and accounting firms) and other businesses because they know the best
people to trust Philippine business investments to.

Miss Saowapa Sawasdeemongkol

ITM #4 57920240

Reference:
International Business The new Realities third Edition : S. Tamer Cavusgil, Gary
Knight, John R. Riesenberger
https://www.mindomo.com/mindmap/singapores-swot7ab3a9781f0d4e219521cf1b7b12cdf4
https://www.gov.uk/government/publications/overseas-business-riskphilippines/overseas-business-risk-philippines#political
http://www.heritage.org/index/country/singapore
http://www.heritage.org/index/country/laos
http://www.heritage.org/index/country/philippines
http://www.heritage.org/index/country/china
https://www.gov.uk/government/publications/exporting-to-singapore/exporting-tosingapore
http://www.business-in-asia.com/countries/laos_polsystem.html
http://www.investinchina.gov.cn/investment-guidance/forms-of-investment/2.html
http://www.business-in-asia.com/laos/fdi_in_laos.html