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hi this is video four for group six in regards to the North East Asian region referenced on the world GDP per capita ranking webpage gross domestic product per capita determines the level of economic development in the country the higher the GDP per capita in a country the higher the economic wealth of its citizens with that in mind we can see that hong kong ranked 15th in 2019 just seven spots below the United States but has maintained a top 20 position since 2010 global positioning power parity in this instance refers to the worth of a Hong Kong dollar to a specific product in Hong Kong as compared to the worth of the US dollar buying that same product within the United States in 2019 Hong Kong fell just short of United States on this scale where the United States was dumb number 11 and Hong Kong was number 12 since 2010 the United States and Hong Kong have maintained the same 11th and 12th positions while fluctuating back and forth between the two this shows a constant purchasing power parity within the two nations which is further reflective of stable and comparative comparable economies one of the greatest threats to US firms in Hong Kong is political unrest in the area this was highlighted by the pro-democracy protests of 2019 in which China was attempting to exert pressure on Hong Kong's political system and mass protesting and rioting occurred based on the Chinese cyber powerhouse bordering hong kong US firms always must be conscious of cyber threats specifically threats to intellectual property the Chinese government views intellectual property completely different from the US in that it believes that new innovations should be made available to all for the betterment of society finally US firms newest threat to Commerce in Hong Kong is kovat 19 also known as the corona virus with a spread of coronavirus many firms have had to drive their workforce two remote workstations at home thus increasing the threat of cyber crimes exponentially some of this entire evaluation of Hong Kong there is no better words than those of the US Consulate General in Hong Kong the strong presence of American firms here is directly related to Hong Kong's long-standing commitment to free trade am Cham currently represents over 1200 US companies doing business in Hong Kong of which over 800 are either regional offices or headquarters US companies appreciate the city's free market orientation transparent legal system and well-established rule of law which together provide a stable and predictable foundation for growth South Korea's current market is significantly interconnected for the United States as reflected in the chart on the right hand side you can see South Korea ranks 6th in the world for importing goods into the into the US currently the US exports nearly 58 billion dollars worth of goods to Korea the top product being mineral fuel anoying which is seventeen point six eight percent of US exports to Korea and also nuclear reactors boilers and machinery which makes up thirteen point nine nine percent businesses have recognized the opportunity to have great success in Korea primarily due to the recently introduced us Korea free trade agreement even small family-owned businesses have shown they have K they're capable of success take for example Kanan engineering a family-owned company who produces air filters for cars and motorcycles has become successful in the Korean market as well as analytical graphics logo which develops software for aerospace and defense systems do the exports being duty-free they now have the opportunity to complete to compete with local businesses within Korea these are just a few examples of how US companies have been able to expand their business due to the Korean trade agreement although South Korea comes with its benefits there also are some concerns the opportunity for trade in Korea does not come with our challenges for starters other nations have recognized the large market in South Korea specifically countries such as Israel in Europe have begun to expand their reach perspective businesses should certainly focus their attention on areas such as aircraft upgrades avionics high-tech sensors and opera and support for combat equipment currently the u.s. makes up 82 percent of South Korea's supports showing that the US has had a lot of successful military defense trading certain concerns when conducting businesses would be things such as contractual agreements unlike in the US where a contract is perceived as set in stone and final the Koreans view contracts as a current understanding of a deal which may mean that current agreements will be altered in the future which can make it challenging for a company to create a business plan also local companies dominate certain sectors such as health and beauty currently two Korean companies make up fifty nine point six percent of the local market which shows the citizens of Korea rely heavily on local companies for these products and shruts them immensely with all that said South Korea offers a great chance for the US companies to expand and increase their profits since the introduction of the u.s. Korea Korea free trade agreement has been a great amount of growth just in four years from 2011 to 2015 there is a 15% growth which is pretty significant when comparing that to the amount of trade that was conducted prior to 2015 from 1968 to 2015 Korea exported eighty nine point nine billion dollars worth of goods to the u.s. 2015 alone roughly ten point four billion dollars of trade was made the trade agreement was has opened the door to companies to be able to successfully trade and make an impact on the market specific improvements have been an intellectual property protection South Korea has signed multiple agreements Dane will protect the rights of companies and their intellectual property this is important especially for software developers who are concerned their programs will be stolen and essentially left worthless also there are now affordable tariffs trade agreement eliminated or reduced 92% of the tariffs that had previously been enacted lastly South Korea's a nation has extremely high tech extremely tech friendly this is reflected in the ninety-nine point two percent of population that has internet access making them easy to reach through things such as social media and also for companies such as Apple Google and so on the Korean population is ideal for customers FDI flows Japan remained low compared to most developed nations across the world inflows are relatively unstable with FDI reaching nine point nine billion u.s. dollars in 2018 this is down from seventeen point seven five billion dollars in 2016 and ten point four billion dollars in 2017 FDI stocks in Japan were estimated in 2018 of about two hundred and thirteen point eight billion u.s. dollars this is up from two hundred point 1 billion US dollars in 2017 in 2018 the u.s. the UK France and South Korea were the main investing countries Europe invested about forty eight point seven percent North America twenty five point nine percent he Jie eighteen percent and other countries seven point four percent of the FDI inflows investments were mainly oriented towards electric machinery finance and insurance chemicals and pharmaceuticals transportation equipment production and real estate why should companies do business in Japan in addition to having the third largest economy in the world Japan has very strong purchasing power and therefore a strong domestic demand as a leader in high technology research and development with the largest number of patents in the world Japan has had a steadily growing economy and rock-solid stability for several decades because of its geographical location any foreign investor operating in the Japanese market has a facilitated entry to other Asian markets the business environment is clearly favorable and reinforced by a stable political system the workforce is highly skilled and the Japanese are known as great workers dedicated to their company the aging of its population opens up great opportunities for products and services geared towards older age groups this includes healthcare technology medical devices entertainment and pharmaceuticals some disadvantages of doing business in Japan include the excessive regulation that hinders economic growth as it increases the cost of starting activities the difficulties the country faces in restoring public finances and deflation international competition restricted by a very insular local business culture the Japanese prefer to do business especially M&A tracks transactions with known partner companies in the same way it is preferable to establish networks and alliances with companies and national professional organization as well as they're being cultural and linguistic challenges that can be complicated to overcome there are many large and recognizable successful companies in Japan some of the top vehicle companies in Japan include Toyota Honda Nissan and Mitsubishi each of these vehicle companies has a very large presence in the United States all of these car brands are successful in the US as well as in Japan other top companies in Japan include banks and other financial institutions some of the top banks or institutions include Mitsubishi UFJ Financial Sumitomo Mitsui Financial Softbank and Mizzou whole Financial some major investment opportunities for United States include medical optical equipment automotive industry electronic consumer goods information and communication technology electronic parts and machinery as you can see in this map it shows potential investment opportunities in different states there are several different projects that were mentioned by President Trump by Prime Minister Abe specific marketing information on China current presence of major US businesses and US product services US companies located in China GE 18t Microsoft Sony Nike Boinky FC Starbucks McDonald's just a name of you there are hardened demand on the US products and China's ecommerce and their cosmetics personal care baby and Mom care formula nutrition supplements fashion appeal in bags three of the comp US companies taken top market share in China and they are KFC 40% market share General Motors market share of twelve point eight percent in Microsoft taken a share of ninety nine point three percent in new competition major area of opportunity for US firms in China is technology agriculture health care and financial services China foreign direct investment has arose over six percent in 2019 and it's due to high tech industry surging ahead however there are some current issues and concerns for US businesses and individuals interested in doing business in China there are environmental issues such as air pollution water shortage water pollution deforestation some indirect one and growing cost from the resources and pressures our migration Public Health social unrest and declining economic productivity and one more which has been ongoing is a u.s. deficit with China in 2018 it's reached 419 point two billion dollars and pretty much a trunk declare war on it and has imposed them tariffs and then 2019 is shrunk to three hundred forty five point six billion and shrinking trade deficit agreement happened On January 15 and 2020 where China agreed to buy additional 200 billion in u.s. goods over next two years in specific categories manufactured goods energy good services agriculture goods so in this way the deficit will be shrinking is China desirable or undesirable country for us firm to consider as our international business our alternative my advice is proceed with caution know your business area and know your advantages versus disadvantages and images are increase in income spending in China growing e-commerce migration corporate law taxes are lower than other countries cheaper wages logistics are more developed and lower energy cost now some disadvantages are slowing of the growth economic growth in China lack of transparency talent recruitment could be difficult investment restrictions competition with Chinese companies and intellectual property rights enforcement also a health concerns such as spread of coronavirus and it's in coronavirus effect on the economy in the region on overall pollution and corruption so when choosing a country to do business with do research weigh in positive and negatives and if you want to invest in China its economy definitely proceed with caution