Negotiation in China: How Universal Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Q.3. Given these facts, WHERE would you suggest the Universal Park be created?

Solution No.3

Shanghai is one of the top growing city in the world, it attracts foreign investors on an annual basis in a significant manner. Capital growth of the city has increased tremendously over the last couple of years. Universal Studios should choose Shanghai to open a park just like a Disney land. Shanghai offers ample opportunities for Universal Studios in terms of business expansion. It is becoming a leading cosmopolitan city due to the economic stability and a huge amount of domestic wealth. Multinationals such as Starbucks, B&Q and IKEA have already captured the market by opting the city.

Shanghai has a reputation to receive worldwide attention on several occasions including the 2008 Olympics and Expo in 2010, Disney and Universal Studios had benefited a lot in that era. It is also considered as the safest place with a relatively low crime rate as compared to Western Standards. Foreigners in Shanghai consider the investment as one of the main attractions of the city followed by ample employment opportunities. Apart from these, some of the other favorable reasons for the Universal Studio to invest in Shanghai are as follows:

As far as FDI stocks are concerned in the last decade, it has been attracting foreign direct investment in the Asia. FDI roused in China since the 1990’s, contributing more than 1.4 trillion US $ in 2012, against US $ 830 billion in China and 680 billion US $ in Singapore.
One of the main advantages for the Universal Studios to invest in the region is the low labor cost which will be benefited in the long run.
Investment in the Shanghai has encouraged over the last couple of years, and FDI inflows are shifting directly to Shanghai. Consequently foreign direct investment in the Shanghai has been increased rapidly.
Global market conditions and economic environment play a vital role in determining the FDI flow into China.
China remains a primary financial hub. Shanghai has also benefited a lot from it in terms of business expansion.
To make sure the city’s future as the focal point of global trade and the taking off of the free trade zone of Shanghai, can play a vital role. On the other hand Shanghai has already earned their benefits in this regard.

All these facts and figures are favorable for the Universal Studios to invest in the Shanghai region. Universal Studios should open a theme park in Shanghai to catch up the available opportunities..................................

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