Answer

Business law

Question 7a

Strengths

When goods are manufactured in China there will be a reduction in cost and this automatically means that the profit margin will increase. Manufacturing in China is also generally good for business because they give better services and are said to be more accommodative towards start-ups as opposed to the factories in the US (Shugar, 2016).

Weaknesses

There are various barriers that are experienced. One of them is with respect to language or communication. A lot of expense is also accrued when shipping and subsequently paying for duty.

Opportunities

When products are manufactured at a low cost, there is a greater chance that better sales will be realized (Shugar, 2016). This means that since the products are affordable, it will be easy to grow the clientele base. 

Threat

A major threat that accrues is with respect to intellectual property protection. It is argued that there is widespread violation and ineffective implementation of the law in China when it comes to intellectual property protection (Husch Blackwell, 2018).

Issue: how can intellectual property be protected when products belonging to a US company are manufactured in China?

Rule: Article 2(4) of the UN Charter requires member states to respect the sovereignty of other countries (UN Charter, Article 2). Further, matters to do with infringement of intellectual property are handled in the country where the IP protection was registered.

Analysis: This means that intellectual property matters in China are handled in China and the same applies to intellectual property matters in the US.NI

Conclusion: US companies that manufacture in China should register both the American and Chinese versions of the marks (Husch Blackwell, 2018).

Question 7b

Strength

There is a reduction in cost when goods are manufactured in China and this automatically means that the profit margin will increase. Further, when products are distributed in various parts of the world there will be a large client base this more sales will accrue.

Weaknesses

Intergovernmental relationships between all these countries have the potential of adversely affecting the company. For instance, when there is no good working relationship between two countries, the sales tariff may be increased.

Opportunities

The company can experience tremendous growth when it casts its net wider and grows its clientele case across the world.

Threats

When there is an increase in export duty or sales tariff, the company may fail to realize the benefits of casting its net widely.

Political

When there is political instability in one country, or when there is a major policy change in one country, the whole business will be affected. For instance, since the company relies on China for the manufacture of its goods if the Chinese government passes policy regarding increased levying for export products, Ouch’s business will be directly affected.

Economic

Economic changes in one country affect the entire business. For instance, during the period of the great recession, Chinese government mandated that manufacturing prices be significantly increased (Shugar, 2016).

Social

The company has to consider the varying cultures and laws when setting shop in the different countries.

Technological

 Issues may arise with respect to technological integration and adaptation because when products such as hockey masks are newly introduced in a market, it may take time for the target population to understand its utility.