Philippine as our destination to move 菲律宾做为生产基地的利与弊(英文).docx

philippine as our destination to moveintroductionour company that manufactures cheap sunglasses, in order to lower production costs, we want to move our factory from developed country to a more cost-effective nation. in the information age, we use the quickest and most convenient way is through the internet. on the internet we can understand that the countrys economic activities, national activities, and even some national policies, through the understanding of the country we can make a correct judgment on our own. we can directly to the local government to understand the policy, as well as their view of the markets. also to the national advisory, through national reflect an understanding of the countrys real situation. philippine is our first choice, which located in the central of asia its traffic is convenient, the climate is appropriate, and rich in natural resource like water, coal, rubber and another competitive advantages that really attract foreign capital enterprises. before company decide move to philippine we have done analyze and solving these 4 problems in our plan: 1. elements of the national business environment might affect our move. 2. obstacles to overcome in the international business environment.3. managing our company is different when we undertake international activities. 4. challenges will we face in managing our new employees.the state of philippinein the advertiser (april 6th, 2010) philippines is the worlds third largest english-speaking country, which was a colony by spain and america, the whole country influenced by europe and the united states and asian, the east-west fusion in race and culture are the embodiment, filipinos have malay, chinese, americans, spaniards, and arab descent, the population is 80000000. family intimacy, pious, enthusiasm, filipino is mandarin, english is the universal language, according to the geographical and cultural philippines is divided into several regions, a total of 111 dialects and rome catholic, 83%, christian faith, 5.4%, islam 4.6%, and a few other denominations. philippines is the tropical rainforest climate, which has two season dry and wet and it has more than 7000 islands, geographical condition is diversiform, 120 races have different languages and tradition. food consistent of china, spain, france, italy and many other countries influence. philippines food blended local and national. philippiness numerous festivals, except public holidays, all regions are regularly held in the local characteristics of the festival activities. philippine is rich in tourism resources, there are numerous natural landscape and human landscape, and consumption is very low prices.elements of the national business environment might affect our moveenglish is the first languagein the advertiser (october 11th, 2006) in the philippines, english is the official language used for education, business, medicine and government. the fact is, the philippine education system has been using english as a medium of instruction for decades. filipino children start to learn english in elementary school and its use continues up to the college level. the intensive use of english is aimed at preparing students for their future occupations, so that by the time they finish their education, they have a comprehensive knowledge of english, and are prepared for state examinations, which are only given in english.philippines they are easy to absorb foreign cultures. compared with other countries, philippines technical staff proficient in english, familiar with international level of professional knowledge and client service standard, they own good business ability and the occupation morals, easy communication with foreign enterprise. low operation costin philippine to carry out business activities can greatly reduce operating costs, saving expenses, mainly saving part is salary components, 50%, infrastructure spending accounted, 20%, 15%, training fee, communication fee, 10%, other factors accounted, 5%. the philippine general labor costs for an average of $300 per month, less than most asian countries, slightly higher than that of india, indonesia; technical staff salary at between $ 500-1000; white-collar employees the average wage level is only 1 / 4 compared with the united states. in addition, the philippine service personnel proficient in english, familiar with the western professional knowledge, but also save the costs of pre-job training. in infrastructure respect, which has ample facilities, there are 400000 square meters of receptivity, rental is low, only 1 / 4 compared with united states, india, hong kong, and the office of the district consists mostly of international real estate company management, a reasonable rental agreement (tina vargas 2011).philippine always had a great advantage in the business world. the initiative of doing ones work in order to maintain stability and flexibility of a company, call center operations, it enabled services, accounting and finance, and technical support can primarily be rate at a very low costs. inexpensive labor and quality assurance is what philippines are striving.the government encourages policythe philippine government is committed to the development of the information industry and business outsourcing services for foreign investment encourage policy. foreign companies doing business in the special economic zone, former 4-8 year tax-free period is duty-free period, after that company would continue to enjoy preferential, only pay 5% of the sales tax. the company also can be duty-free imports of special materials and equipment including wharf age, free to use check equipment, hiring of foreign workers (ronald e. dolan, ed. 1991)these policies provided by government to benefit foreign company and organization investment or entry. as a strategy, which reduce the barrier of foreign investment and increase local competition bring abundant of opportunity to philippine. strategic advantage of geographic location philippine located in the center of asia, convenient transportation, 4 hours flight to reach any city of asia. currently its economy develop fastest area, which is a commercial exchanges crossroads, it also is the important juncture of asean market, in international business activities philippine is traffic hub of sea and air transport.obstacles to overcome in international business environmentthe establishment of factory in foreign countries is made more difficult by restrictions and regulations imposed by foreign countries. laws may restrict foreign ownership, impose operational burdens, or even, in some parts of the world, lead to expropriation. also, the businessman operating in a foreign country must adapt to the cultural differences between that country and his own.in obstacles aspect, set up factories in other countries, must be combined with the local environment and customs, about the taboo and which cant be mentioned, to those the company needs to focus, because some mistakes will cause more mistakes.chief among the obstacles to international business environment are: 1. language barriers. (eleste dempster 2010) states that in philippines, there are two official languages: tagalog and english.as a foreign enterprise who set the factory in the philippines, we know the english is the major language in philippines, but a large part of the workers have the low cultural level, they can only speak tagalog. so we need to hire the local residents who can speak tagalog and english in order to translate and explain to us. certainly, anyone who has been overseas knows the difficulties of communication created when different languages are spoken. not only the language itself but differences in idiomatic expression which sometimes can only be appreciated by a native to the country complicate business communication and can produce costly and embarrassing mistakes in marketing operations.2. cultural differences and social force. culture can play an important role in international business and trade. this is particularly true in advertising and sales promotion. ignorance of cultural taboos and manners and customs of a foreign country can create serious problems. a nations culture and social forces can restrict international business activities. culture consists of a countrys general concepts and values and tangible items such as food, clothing, and building. social forces include family, education, religion and customs. in some countries, purchasing items as basic as food and clothing can be influenced by religion. in many nations, individuals do not have the same choices in food, clothing, and health care. selling products from one country to another is sometimes difficult when the cultures of the two countries differ significantly. for example, when mcdonalds opened its first restaurant in rome, it was met with protest. the people of rome objected to the smell of hamburgers frying. mcdonalds overcame this objection by changing the exhaust system of the restaurant (allen kaneth 2010).we set the factory in philippines, so we must to understand the local cultural taboos and customs. in philippines, people do not like to talk about the domestic political disputes and religion during the communication. and do not ask the workers about their private problem and family problem. we do this in order to get on along well with the workers, by doing this, the workers will do better for us.differences in monetary systems. with different countries having different monetary systems, international trade can only take place if the monetary unit of one country can be readily exchanged for that of another. this necessitates the establishment of a system of exchange and rates of exchange-creating complex problems. the problems are further complicated by inflation within a country, monetary policies of the country, or currency devaluations (author 2011).3. salary. the salary is also a very big problem, our company as a foreign factory, must offer the higher salary and better conditions to the local worker, or they prefer to work in the local factory.4. political environment. in philippines, as the unstable political environment and the multi-party political power, the political disturbance and demonstration usually occur. as a foreign enterprise, its dangerous to set the factory in philippines, because the unstable political environment, some local people do not work during the demonstration, the emotion of people is very excited so that hard to control(cocoy 2011)it is very big problem if anyone wants to set the factory in philippines or get into the philippines commercial field. the only thing we can do is to reduce or stop production during the political disturbance in order to avoid the economic losses.5. outdated facilities. philippines is a developing country in asia, the same as other developing countries like thailand, indonesia, vietnam etc., the unstable business conduces the outdated facilities and bad production environment, especially the electrical power system, it is the major thing that the foreign investors worry about (ijsselstein 2003). the outdated facilities not only reduce the output but also increase the maintenance cost, if we want to change all the facilities, it will be a big charge.in a word, although philippines is a good place for production movement, it has many advantages like traffic, appropriate climate and so on, but it still is a develop country, it still has various problem that affect the whole business environment, we need to try the best to overcome these problems in order to help the company survive in the foreign country. referencehttp:/www.asiabusinesschannel.tv/pro