TOURISM & FOREIGN TRADE ASSIGNMENT

Research the Following Questions.

Provide Written Answers

Provide details of where you got the information from.

1. What are the current exchange rates against the RMB for:

• US $

• Japanese Yen

• Euro

• Pound Sterling

• Canadian $

• Australian $

• Russian Rouble

2. Oil

• What was the price as at September 1^st 2007

• What was the price in March of 2008

• What was the price on September 1^st 2008

• What will be the price on Septembeer 1^st 2009

• What was the price of crude oil per barrel in September 2005, and September 2006.

• Why is the price of crude oil important?

3. Overseas Travel

You are going to America to investigate the possibility of opening an office there or perhaps to try and make business contacts or do a Sales drive.

• What is the cost in Rmb of a Business class return ticket to New York – and -

• 14 Days of Accomodation in a 4 star hotel while you are there

• What is the cost in Rmb of am Economy class return ticket to New York – and -

• Average cost of your Meals for the 14 days you are there.

4. Foreign Expert

You have invited a 'foreign expert' to come for 2 weeks to China to help you understand all the 'ins and outs' of setting up an office in China and forming a business association with an American company.

• What will be the FEE or salary must you pay him for his services.

• What will it cost you for this experts airfares, accomodation and meals.

5. Passports and Visas

• How and where can a Chinese person get a visa to travel to another country?

• What is the cost of arranging your passport with Chinese Government

• What is the cost of arranging a visa to enter a foreign country

• What types of visa are there and which one do you specifically need for the USA.

6. Salaries and Living Expenses

• What is the annual NET income in American $'s of the average American worker.

• What is his annual living expenditure.

• What is his tax rate per annum - how much personal tax does he pay.

• What is the annual NET income in American $'s of the average Chinese worker.

• What is his annual living expenditure.

What is his tax rate per annum - how much personal tax does he pay.

7. Employees

• What salary does a fully qualified tourism manager receive in China - per annum.

• What salary does a fully qualified tourist guide receive in China per annum.

• How many hours per week do these people work ON FULL PAY.

• How many days or hours in the year will they be on holidays ON FULL PAY.

• Your company sends you to live and work in America for three months. Currently they pay you 3000 RMB per month ( US $350) you can't live in America on this. What should they pay you? Justify receiving the amount you state.

8. Office Rental

• What does it cost to rent a reasonably sized Office in an upmarket section of SuZhou?

• How much insurance must you pay in case of fire or flood.

9. Equipment and Furniture

What does it cost to fill your new office with equipment? For Example:

Telephone / fax machine / photocopier / water bottle / tea coffee making facilities/

Your desk / secretary's desk / paper, pens, rulers, staple machine, Computers. etc

What will it cost to have professionally printed stationary (envelopes, letter heads etc)

Provide a list of items and their cost.

• When renting office space in YOUR CITY, what building maintenance fees do you have to pay - over and above your rent.

• How much insurance must you pay to offset any 'compensation' claims from your customers (failed tours - injury - accidents - lost luggage etc)

10. Professional Services

You will need to retain a Lawyer and an Accountant and Advertising agency to handle all your legal, accounting and advertising affairs. What fees are associated with these.

11. Licenses and fees

• What licences do you need to operate a tourist business in China.

• What fees are involved in the licences.

• When you must arrange accomodation for your guests, how much discount will the Chinese Hotel operators give you for each guest?

• If there is an entrance fee to a particular museum or place, how much discount will the tour operator be given for his tour group.

12. What are the advertising costs in China for the following:

• A Television Advertisement

• A full page advertisement in a Magazine

• Small pictorial advertisements in a newspaper or tourist paper.

• A professionally written article about your tour.

• How much in 'Agent's fees' will a foreigner's hotel charge you to book their guests on your tour?

12. What are the advertising costs in America for the following:

• A Television Advertisement

• A full page advertisement in a Magazine

• Small pictorial advertisements in a newspaper or tourist paper.

• A professionally written article about your tour.

13. Tourists in China

• List the top 5 countries whose people visit China every year.

• What are the top 10 places of interest in China

• What are the tour costs associated with visiting each of these places.

• How much money must you pay a 'special' translator to accompany you on a tour, to interpret for a large group of people who don't understand English. For instance, maybe you have a group of Finnish people. Maybe you can find some Chinese person who speaks Finnish or some Finnish person who speaks Chinese. What will you pay them per hour or day?

Touring in Foreign Countries

• List the top 5 countries that Chinese people want to visit.

• What are the top 10 places of interest in those countries (2 for each)

• What are the tour costs associated with visiting each of these places.

14. Costs and Expenses

When you plan a tour you need to consider wages of the staff, vehicles, guest accomodation or entrance fees, meals etc. When working out how much to charge each person, you need to consider what you must earn to pay your rents, licences, office staff wages, advertising, taxes, insurances, lawyers and accountants, etc and

then you have to allocate a profit margin.

• Do a financial sheet showing production cost of a tour AND all the add ons.

• What is the final cost to the person in the street (the customer)?

15. Stock Markets

1. What are the names of the major Stock Markets of the World – list the country as well.

2. What time do these different places open and close (in Chinese time)

3. What is a 'tariff' and why it the term important to know.

4. What are import and export 'duties'.

16 Shipping / Exporting

1. What is the cost of sending one Shipping container to Boston USA By Air

2. What is the cost of sending one Shipping container to Boston USA By Sea

3. How much insurance will you pay to protect your financial investment (shipping container).

4. What penalties must you pay to the foreign company if your goods do not arrive, are not the right goods, or are substandard goods.

Places to find information:

Ask Parents, Business People, Teachers, Shopkeepers

Check Newspapers, Libraries, Business Books

Check the Internet

Ask at Business Houses,

Check at Tourist Offices, Stationary Stores, Airport

Check at Public Security Bureau, Ask At Government Offices.