International business in emerging economics Assignment - 1

International business in emerging economics - Assignment Example In addition, there are other benefits including availability of raw materials, affordable skilled labor and ready market. The continued efforts by governments and environmentalists to promote renewable energy are a major advantage for the company. The entry of EST in the Chinese solar panel manufacturing sector can be done through the adoption of a trade-based strategy. This strategy involves establishment of a factory that manufactures solar panels without using any subsidiaries. The development of a wholly owned factory is highly beneficial to the company since the company is able to streamline its operations according to favourable conditions of the company. China is one of the strongest emerging economies in the world having been catapulted by the economic reforms that were advanced in the 1970s. With a GDP of $ 9.24 trillion in 2013 (which is a 7.7% growth), China has shifted from a centrally planned economy to one that is market based (The World Bank 2014). The availability of raw materials, labor and ready market has made China to industrialize at a very fast pace. Among many technologies that have been advanced in the world, the manufacturing of solar panels is a major hit in the market today. Solar panels are being widely used in many countries of the world where there is adequate solar energy as a source of renewable energy. This is because solar energy is associated with diverse benefits including environmental safety and is a relatively cheaper source of energy. The solar panel manufacturing has demonstrated 15.5% growth rate for the period between 2009 and 2014 (IBISWorld 2014). In addition, there is an increase in the demand for solar panels in Africa and Asia. In an effort to enhance efficiency in the production of solar panels not only for consumption in China but all over the world, Ecofriends Solar Technologies endeavors to establish a manufacturing plant in China. This report puts into perspective an assessment developing such a plant in