Economic: 1. Overheating of investment: tally to a interrogation of Nomura securities Financial and Economic Research Center, the growth in the received GDP of China is increased with low speed, however at that place were a overheat angle of dip in fixed assets investment. This tendency exists as well as in fluid Industry. 2. ever-changing exchange rate: From last year, the exchange rate in the midst of Chinese Yuan and US Dollar is increased from 0.14631 to 0.14927, which means, when competing in China, international diligent industries aim become more belligerent than local mobile industry. Cultural: 1. Rise of the Upper-Middle Class: According to a survey made by Chinese honorary society of Sciences, people earning an annual income of more than 100,000 Yuan in snatch are near 150,000 last year, which accounted approximately 9% cosmos in that city. People in this incoming level apply great tendency and are able to purchase mobile phones. 2. Mobile phone as fashion: According to a research, the phenomenon of transforming the mobile phone into high-fashion jewelry is observed in some(prenominal) countries, include China. As an example, you see how many Chinese students have nice mobile phones. Another example is iphone 4, the average impairment of iphone 4 is about 560 Pound which is quite expensive.
But orchard apple tree Company sold 1.7million iphone 4 within the first 3 days. 3. Technological: 1. Mechanisms Supporting Sustainable High Growth: there are two economic systems exist in China. In coastal urban, the market is more open and in interior area, planned economy still remains. So the coastal urban become more wealthy and huge amount of bum inland labor start working in coastal urban, these low cost labor support the development of factories in coastal urban. The workers suffer paid and then remit specie back to inland. Coastal urban factories then sell their products to inland, for example, mobile phone. So it generates a long term double-win cycle. If you want to get a full essay, order it on our website: Orderessay
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