### Research Questions 1-5

Commencing March 4th 2009

Groups will present answers to Questions 1 - 5

We will present the Body of the Report   On This Page

Appendicies will be provided  on the Linked Pages

Visitors to this site please note:

This is Class work!  This is what is presented in class.  Students upload their info using USB's and then I - the teacher - look at it and comment on it.   The students are learning about the world of business and in the process HOPEFULLY they will learn something about Report writing, Appendicies, Referencing, footnotes etc.

They are learning to think further than the initial question.

The list of questions may be found HERE

Some Lessons we learned in today's Class

1.  If you only research from ONE INTERNET SOURCE, later when you try to go back to it, that page may no longer exist or may be temporarily be unavailable.   Always provide some alternative sources

2.  When you are checking prices and flights on the internet, the page which shows the details of that flight is A TEMPORARY PAGE ONLY, so you cannot provide that page link.  You have to provide the link to the page into which you load your request.

3.  When presenting material from your own notes:  a)  Make sure that you use a LARGE TYPE     so that it is easy to read from a distance.  This way you don't have to read with your face in your paperwork.   Listeners should be able to see your face as you talk TO THEM.

Question 1

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

Group 1

• US \$  1 - 6.87 rmb
• Japanese Yen 1 - .0725rmb
• Euro  1 - 8.49rmb
• www.usd-cny.com 2008.11.21   - 5.38pm

Group 2
• Pound Sterling  1 = 11.82rmb

• Canadian \$1 = 5.78rmb

• Australian \$1 = 4.71rmb

• Russian Rouble  3.85 - 1 rmb

Question 2

Oil Prices

2. Oil

Group 2
• What was the price as at September 1st 2007 = \$74

• What was the price in March of 2008 = \$98

• What was the price on September 1st 2008  = \$104

• What will be the price on Septembeer 1st 2009  \$112

Group 3
• What was the price of crude oil per barrel in September 2005, = \$67.57 - \$64.37

•  September 2006. = \$67.50

• Why is the price of crude oil important?      The increase in the price of oil can effect the US economy and can slow down economic growth.

New Question:  What has that to do with China?

It effects the exchange rate -  Effects import and exports -  Trade Imbalance

Note that the address supplied by this group for their answers no longer exists.

These addresses are no longer current.  No other addresses were provided.  What to do?

Note:

In Question 3  we encounter our first Appendix.

An Appendix contains all the extra information that a person is likely to need in relation to a matter, that was not 'specifically requested in the original question.  It is extra information or expanded information that provides the fullest possible answer.

Question 3

Group 5's answers for economy class were provided as the demonstration of Report writing on THIS PAGE

3. Overseas Travel

Group 3's section was:

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.

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

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

A - 75402rmb for Business class ticket -  http://fly.emirates.com

We noted 2 things about this answer:   a)  That we really need the cost in US\$ -  But the Chinese boss probably wants it in Rmb.
b)  When We checked out the link and enquired again, we discovered that the price has come down by 6,000 rmb since the time that this group first enquired about prices.

B. -  Hotel Prices:    -    3 choices

1. Doubletree Metropolitan Hotel US\$4786 - 14 days

2.  The Time Hotel US\$4316  - 14 days

3.  Intercontinental THe Barclay New York US\$ 5484.3- 14 days.

Group 5
• 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

A.  Economy Class Return Airfare Shanghai to New York.

A. i)

Return Airfare Economy Class Shanghai to New York
(Stop Over in London)

Minimum: \$1514  British Airways (1)
Maximum: \$4502   Japan Airlines

Flight Details (2) in Brief:

Depart December 4th 2008
Pudong Airport 10:55am
Arrive JFK 9:50pm 5th December 2008

Return January 6th 2009
Depart JFK 8:40am 6th 2009
Arrive Pudong Airport 7th January 9:25am

A.ii)

Travel Expenses Yanchang - Shanghai

140rmb Approx Return

Meal Expenses during Travel

100 rmb Approx

Overnight Hotel Stay required Shanghai
Hotel December 3rd : Undetermined.

Note: (4)
There may be a need for an overnight stay near JFK in New York.

Still need the hotel rates from Group 5

[The footnotes go under a line at the bottom of the page.]
1. Photoshot of Flight itinerary: Appendix 4
2. Flight 168 British Airways: Appendix 4.
4. It is unknown at this point where in New York the manager will stay and whether or not it will be convenient to stay the first night in a hotel near to JFK airport.

Question 4

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.

a)  \$14,093.75 for 2 weeks  http://swz.salary.com

This page took us to a blank enquiry page - so I don't know how you calculated this amount of money.

b)  \$1514 - \$4502  Appendix 2....
This is the same price as the bosses trip to USA  BUT cost varies from season to season, and company to company, and economy, business, first class.  Even time of day, even whether the flight is almost full.

Question 5

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.

Wed 11th March

It is still being processed.

6. Salaries and Living Expenses

Detailed Reports See Appendix  7

What is the annual NET income in American \$'s of the average American worker.  - \$63,091

What is his annual living expenditure. - \$49,638

What is his tax rate per annum - how much personal tax does he pay.  - \$2233    Tax rate : 25%     (???  \$2,233 as 25% = Income of \$10,000?????)

The net income:  - \$11220

Note we now have 2 different figures for Net Income.  Why?????

What is the annual net income in American \$ of the average Chinese worker?   12,108 yuan per annum or \$1773 p.a. ( Net income = salary less tax)

what is his annual living expenditure?    -   7,182 yuan

what is his tax rate per annum - how much personal tax does he pay?  10%

7. Employees

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

The salary of a qualified tourism manager=basic salary + allowance = 36000 Yuan

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

500 to 800 (?) ,in addition, they can also have commissions and tips /  How Much per Annum?

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

About 56 hours per week.

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

Four (4) Weeks per year

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.

Upmarket section in suzhou

Suzhou highsalary Science and Technology Parks and Suzhou Industrial Park

http://housing.jinti.com/2095/15672008/1412535.htm（Suzhou Industrial Park）

http://housing.jinti.com/suzhou-bangonglou/112008-1867598.htm（Suzhou highsalary Science and Technology Parks）

Insurance

The name :Heng li da comprehensive insurance business

Composition of the security policy：

First, some of the property insurance

Second, some of the liability insurance

Policy rate

First, some of the property insurance

Second, insurance, the industry's own customers should be in accordance with the basic characteristics of the control insurance rates

Third, the deductible requirements

Rate regulation

http://www.pingan.com/group/insurance/henglida.jsp

How much =  how much money will you pay.  This answer tells me what types of insurance.  Do I need them all?

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.

Firstly:   This question asks for the Cost of outfitting an office - so there must be an approximate cost provided.

Secondly:  In providing the itemised list there are no explanations of what is provided, eg:  the 105 /6 for Telephone = ?

Is this a price?  Is it the purchase price of a phone?  The monthly expenditure?  The rental?

Calculator -  Only one?
Desk - only one?
Chair - only one?

You need an approximate TOTAL cost of outfitting the office and an itemised list that shows how this price was calculated.  Perhaps you forgot to include some important items.

 items websites telephone 105/6 http://item.taobao.com/auction/item_detail-0db1-37f5d294d2b14bd91a7c3f571bd4780f.jhtml fax machine 760/10 http://item.taobao.com/auction/item_detail-0db2-6c3b5272ec8b9c4e778a59ffc6f79a44.jhtml laser printer 2450/20 http://item.taobao.com/auction/item_detail-0db2-6bed03879543bcb97a0293841c2d50b1.jhtml calculator 36/5 http://item.taobao.com/auction/item_detail-0db1-f01bc88e2dcf5056186eeda33510bb4b.jhtml drinking water machine 225/0 http://item.taobao.com/auction/item_detail-0db1-6c649b9a41af88563f0ef88f80b02a04.jhtml desk 388/10 http://item.taobao.com/auction/item_detail-0db2-06dbb9e8039f0efe47e0eb0ace330c75.jhtml?pm1=3 chair 130/10 http://item.taobao.com/auction/item_detail-0db2-a32f2eadad96b6db3d8feec9670ef7c9.jhtml bookcase 166/20 http://item.taobao.com/auction/item_detail-0db2-95c5dd605c6991c93ecb774c14ace745.jhtml paper A4(80g) 19/7 http://item.taobao.com/auction/item_detail-0db2-97fe3daf1901f22fddc199057873e9f4.jhtml pen      1 market ruler      4 market staple   12 market file  7 market cup  3 market curtain 35/5 http://item.taobao.com/auction/item_detail-0db1-03ac25e3c8982bd83a682ec825f174bf.jhtml laptop      6100 market desktop    4500 market air conditioner 2500 market envelopes 2 market

Still to be answered?
• 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 angency to handle all

your legal accounting and advertising affairs.What fees areassociated with these.

Lawyer: 3000RMB

Accountant:1500RMB

It depends on the economic level

It depends on.  On the average: about two percent of the earning.

OK!  Good so Far but:   Is the 3000rmb for a Lawyer the annual fee, or one month consultation, or one time consultation, or the cost of having him draw up a contract?

The Accountant gets a set fee?  Or a Percentage of your annual profits?  Is it negotiable?

Advertising:  2% of earning refers to what?  How much you earn per year?  How much revenue is gained from an advertising campaign?

The Business world is not so simple as it sounds is it?

Get money and live free yeah?

But there are so many things to pay for?

Q. 11

http://ks.cn.yahoo.com/q estion

Registered capital amount International travel service at least 1.5 million.

Chinese domestic travel service at least o.3 million

Quality deposit  International travel service operate entry travel service pay o.6milllion

exit travel service pay 1 million ; International travel service pay o.1million

http://www.9tour.cn/scenic/city3/4649/

Yes, the discount which tour operator will be given for his tour group is about 83%

National Museum of ChinaAdults pay 30 RMBadults group pay 25 RMB.

When in special festivals(such as Children's Day ,Women's Day) ,the entrance

fee is free for some people

Post code 100006

Tel86-10-65128901

Fax86-10-65128986

Website http://www.nmch.gov.cn

Article 8. Tourist agencies of Category 3 may register andcommence operations only under the following prerequisites:

(1) Having articles of association for the tourist agency to beestablished, which are in conformity with the State provisions;

(2) Having a fixed site for setting up an office and forconducting business operations;

(3) Having a registered capital of RMB 30,000 yuan or more;

(4) Having the organizing ability to provide, within theirscope of business, the tourists with various services that meet thestandard service requirements;

(5) Having a contingent of administrative and service personnelwho are familiar with tourist business.

Q. 12

Magazine Prices for 2008

 position size Inner size RMB cover 419×270 425×276 23.8 content 212×270 218×276 10.8 Inner first page 212×270 218×276 9.6 Front cover 424×270 430×276 16.8 Middle cover 424×270 430×276 15.8 Back cover 424×270 430×276 14.8 Cover 1 212×270 218×276 11.8 Cover 2 424×270 430×276 13.8 Cover 3 212×270 218×276 9.6 Bottom cover 212×270 218×276 14.6 Inner page 212×270 218×276 9.2

Q. 13

Q. 14

From Huaxia Travel Agency (Tel: 0515-8187726   8222318   Address: Jianjun east road 62, Yancheng)

Wage of staff: 500~1000RMB+reward

Rent: +20,000yuan each year except water and electricity supply

Vehicle: bus (whole bus or single)

Tax:

Insurance:

Lawyer:

Accountant:

Guest accommodation: depends on what hotel you want

From China Youth Agency

Wage of staff: +100~1000RMB+reward

Rent: 1300yuan for two rooms each month

Vehicle: bus (whole bus or single)

License: no pay for annual, pay the liability insurance, which contact with the insurance firm, pay 200yuan for changing the license once 3 years

(from  Yancheng Tourism     Tel: 0515-88356861)

Tax:

Insurance: 70~80yuan for bus company ; 1.5yuan each person for personal insurance

Lawyer: no

Accountant: no

Guest accommodation --depends on what hotel you want

The example of travel rates:

Beijing five solo tour (Holiday Air Travel     Tel: 88308879)

1、             traffic: one plane, one-way train hard seat (sleeper need, when they make up the difference in the enrollment 130yuan/person),air-conditional tour bus;

2、             accommodation: double standard room (air-conditional, color TV, independent bedroom);

3、             meals: soup eight meals (4 dinners, 3 breakfast, self-catering on the train);

4、             insurance: travel insurance;

5、             price: 1090yuan/adult (<1.4m children 790yuan/person, including air tickets, parking spaces in Beijing, meals not including tickets, train tickets, do not account for bed )

(Yancheng Civil Aviation Ticket Office

website: www.yccas.com)

Mudu Suzhou, Tianmu Lake two-day tour

(Yancheng “Four Seasons Tour” of the Commonwealth Tourism    website: www.ycsjzl.cn)

1、             transportation: air-conditional tour bus;

2、             accommodation: double standard room;

3、             meals: eight meals soup

4、             insurance: travel insurance;

5、             price: 388yuan/adult (198yuan/child, not including tickets, do not account for bed)

Q. 15

创建时间：2009年3月20日

http://www.marketclocks.com/index.php?content=market&region=1

http://www.wisegeek.com/what-is-a-tariff.htm

A tariff is a tax placed on imported goods. Each country has separate tariff regulations. The five main types of tariffs include revenue, ad valorem, specific, prohibitive and protective.

http://www.selloverseas.co.uk/importance-understanding-tariff.html

It is important that your international business understands in detail how the Tariff operates and how to use it to accurately identify the goods you trade with other countries. Any mistakes in the classification of any goods could mean your business will pay too much customs or excise duty. Your business can subscribe to an email newsletter that can keep your business up-to-date with the latest changes to the Tariff.

Under the Law, all goods which are exported or imported across Vietnamese borders, or pass between domestic market and a non-tariff zone and vice versa are subject to export or import duty except goods in the following circumstances:
• Goods in transit;
• Humanitarian and grant aid goods;
• Goods exported abroad from a non-tariff zone, goods imported from abroad into a non-tariff zone for consumption there, and goods passing between non-tariff zones;
• Oil and gas exports which are subject to natural resources royalties.

Q.16

Q16

1.Assume 100shipping container→500\$(FootnoteA)

2.Lianyuangang→Boston

40GP    4000/container (http://ship.shippingchina.com/fclprice/index/index.html  )

3.8/container
(
Insurance fees decided by the value of commodity)

4.Substandards goods→confiscated

People involved→fined(\$10000-\$20000)

Pay double of the profits they earned to Gov.

Compensation (FootnoteB)

FootnoteA

 Ocean 20’ container \$3800 40’ container \$5000 *LCL 1 Pallet \$750 >1 Pallet \$550/pallet

FootnoteB

 Standards of compesation . 货币： 美元 箱龄 20GP 40GP 40HC 20HC 45HC 20FR 40FR 20OT 40OT 20RF 40RH 0 3200 4300 5000 4600 6600 5500 7500 4000 5000 25000 33000 1 3040 4085 4750 4370 6270 5225 7125 3800 4750 23750 31350 2 2880 3870 4500 4140 5940 4950 6750 3600 4500 22500 29700 3 2720 3655 4250 3910 5610 4675 6375 3400 4250 21250 28050 4 2560 3440 4000 3680 5280 4400 6000 3200 4000 20000 26400 5 2400 3225 3750 3450 4950 4125 5625 3000 3750 18750 24750 6 2240 3010 3500 3220 4620 3850 5250 2800 3500 17500 23100 7 2080 2795 3250 2990 4290 3575 4875 2600 3250 16250 21450 8 1920 2580 3000 2760 3960 3300 4500 2400 3000 15000 19800 9 1760 2365 2750 2530 3630 3025 4125 2200 2750 13750 18150 10 1600 2150 2500 2300 3300 2750 3750 2000 2500 12500 16500 11 1440 1935 2250 2070 2970 2475 3375 1800 2250 12500 16500 12 1280 1720 2000 1840 2640 2200 3000 1600 2000 12500 16500 Lowest 1280 1720 2000 1840 2640 2200 3000 1600 2000 12500 16500

http://www.hanjin.com/cn/

http://www.hanjin.com/eservice/cn/demdet/chargeInquiryInput.do

http://www.hanjin.com/eservice/cn/surcharge/inputNew.do

Insurance fees decided by the value of commodity

http://www.cscl.com.cn/info/contact.jspcompensation

This is still a work in progress folks!

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