Canadian Tim Hortons restaurant wants to enter the Chinese Market. Taking this into consideration, please write a brief two page essay on the questions listed below:
How big is the Chinese market? What is the real GDP adjusted for Purchasing Power Parity?
What is the current state of the economy that you have chosen? Collect the latest available data on nominal GDP, real GDP, per capita real GDP, unemployment rate, inflation rate, interest rates, exchange rate(s), and any other important macroeconomic data.
How is this economy doing? What is the growth rate of the real GDP? What is the trend in this variable?
How fast is the per capita real GDP growing? This is an indication of the buying power.
Is the country experiencing an inflationary or a recessionary gap?
What kind of macroeconomic policy should this country follow?
Can you find the relevant data for the last couple of years or more?
At what stage of the Business Cycle is this country presently in? Is there an inflationary or recessionary gap?
What kind of fiscal and monetary policies is this country presently following? Expansionary or contractionary?
What is the price elasticity of demand for fast food in China? Is it elastic or inelastic?
How are the Western fast food companies doing in China? McDonald’s, Starbucks, and KFC are here. Can Tim Hortons learn something from the experiences of these companies in China?
What is the Income Elasticity of demand for coffee and fast foods in Canada? Can we assume that in China the elasticities will be somewhat similar?
What other issues with regards to the social, political, labour, or environmental practices in China should be taken into consideration by THI?
Is it going to be easy to find skilled persons to work at THI?
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