International Business Strategy Essay Example | Topics and Well Written Essays - 750 words

International Business Strategy - Essay Example The theoretical framework applied for external audit is the PESTEL analysis. The political system in China significantly favours entrepreneurship. Having risen from a middle-income country to a near developed country in less than a century, the political system has a history of favouring entrepreneurship (bec.org). Hong Kong is the richest country in the mainland China with a GDP of US$ 258 billion. This makes it one of the most economically viable nations. The purchasing power in the country is estimated by the World Bank to be US$ 42.653. The country has other established foreign and local brands that pose great competition to Koyo Jeans. These include Diesel, Calvin Klein and Levis which are international companies; and Gallery and Lucky Brand, which are Hong Kong-based (lowtax.net). Being a local company, Koyo jeans do not experience any social or political barriers. The population of Hong Kong is more than 7 million people most of whom embrace the European and traditional Chinese clothing as fashion. Because of the cultural orientation of the products, the demand for Koyo Jeans’ products is high among the people who can be said to be luxurious shoppers. They have been quite receptive of the Koyo products over the years and has helped the company develop. Canada has a democratic tradition dating back to mid-nineteenth century. A general governor governs the country, and the political system is fairly stable. Being a developed and industrialised country, the political system is supportive to businesses, both local and foreign. The population of Canada is more than 34 million people and is in constant expansion. The Canadians are not only affluent but also fashion sensitive. This means that there is a ready market for the products. Jeans market in Canada experienced a 2% increase in 2013 (euromonitor.com). The main competitors in this market are the European brands; Diesel, Calvin Klein, Levi; and the Canadian