Booming Cosmetic Industry As Affected By Globalizing Cultural Demands And Arts Of Trade

Research Proposal:
America and China: Booming Cosmetic Industry as affected by Globalizing Cultural Demands and Arts of Trade
Introduction and Body: Cosmetic Industry of China and America
* Production Costs
Ї America and China are on a continues battle of economic advantage. Currency is dependent to production, distribution and the law of supply and demand. This causes a Perceived Value which is an important factor is that the prices of items like electronics and cars are not always determined based on the cost of producing them. A product may have a higher perceived value in one country compared to another country. A common brand may have a perceived high value in one country and could be sold as a premium brand there, enabling the seller to charge a higher cost. Even the cost of managing a business in a country can affect prices. Hiring employees and setting up stores will not cost the same in every country. CITATION Man15 \l 13321 (Sahajwani, 2015)
* Economic Pressures
Ї China’s services and products are becoming more expensive globally. China used to be cheap. According to the statistics the World Bank uses to calculate Purchasing Power Parity (PPP), back in 2003, a dollar’s worth of currency bought close to 5 times as much in China as it did the U.S. CITATION Har16 \l 13321 (Sirkin, 2016)
Ї Taxes and Import Duties – Increased prices based on law of supply and demand, exploitable by leading organizations in trade of imported goods and products.
* Economic Privileges and Priorities CITATION Man15 \l 13321 (Sahajwani, 2015)
Ї China has been investing more and more to the industry of beauty and cosmetics. The cosmetic industry in China has been increasing with the rapid growth of the Chinese economy these recent years. The total retail sales of skin care products and makeup products in China is estimated to 142 billion RMB and 21 billion RMB respectively ...