Evaluate how economics, government, and law affect value creation in the global context.


Evaluate how economics, government, and law affect value creation in the global context

In this Assignment, you are required to prepare a Microsoft® PowerPoint® presentation of 10–15 slides with audio. Please see Doc Sharing for a tutorial on adding audio to PowerPoint presentations.

Please review export.gov and export tutorial websites using the links found below and in the webliography document in Doc Sharing along with assigned readings.

Part 1:

Assignment Checklist:

  1. Assess economic differences between the U.S. and a foreign country of your choice in prices, promotion, and legal protection.
  1. Evaluate how you might distribute (export) your product or service.
  2. Explain how exporting your product or service could affect value creation in the global context.

Part 2:

Assignment Checklist:

  1. Decide a means of promotion for the product or service.
  1. Determine legal protection for a brand.
  1. Describe your distribution plan for a new product or service.

Sample paper

How Economics, Government, and Law Affect Global Value Creation

Part 1

Economic differences between the US and China in terms of legal protection, promotion, and prices.
How to distribute a product or service.
How exporting a product affects value creation in global context.


China’s economy is built on a socialist market economy while the United States remains a capitalist country .
China is having the largest economy from the end of 2014 as the countries GDP for 2014 was $ 17.63 trillion.
Before 2014, the US had the largest economy with a GDP of $ 17.42 trillion.

In China, most of the assets and properties are communally owned or rather owned by the government which issues utilization contracts to organizations and individuals as opposed to the United States where properties and assets are privately owned forcing the government to purchase goods and services from the private sector(Fogel 2010).
Additionally, the Chinese population is increasing at an alarming rate which leaves most individuals at the risk of going unemployed, unlike the United States which is striving to control its populations.


annual increase in gdp
annual increase in gdp

China has remained a fundamental recipient of the global destination of Foreign Direct Investments (FDI) in recent years. More than 190 nations from around the globe invest in China, including the World’s Fortune 500 Companies. As of 2009, the total shares of Japanese, US, and European corporations in Chinese exports were only 11%
FDI in the US was valued at $2.9 trillion, each year foreign companies making new investments in the US, thus increased benefits to the American economy (Fagan, 2010).
Concerning foreign investment, the ‘negative list’ system introduced in 2016 by Chinese government allows foreign investments to be treated identically as local investments (The UK Government, 2016).
In the US, foreign investors that involved in mergers and acquisition activities must pay attention to the national security assessment under the Axon-Florio (Exon-Florio Amendment to the Defense Production Act) (Fagan, 2010).
China’s economy is currently facing a period of slower growth (The UK Government, 2016).


  • Direct sales
  • Agent
  • Partner

Direct sales channel would give my company an opportunity to contact the company customers without necessarily involving intermediaries through visits, mail order or any online means. This gives the company the control over presentation and pricing of our services.
The use of agents who perform as individual contractors or work for an agency will provide consumers with the service and take commission from the company.
Partnering with a related but a non-competing organization will enable the company to offer the services within the framework of the partner’s operation.


With the growth of global value chains (GVCs), economies are more interconnected.
Imports are essential for exports in complex value chains such as transport.
Exporting and importing leads to lowering of investment barriers in an efficient manner enabling countries to be integrated in GVCs.
Exports allows for creation of thousands of bilateral and multilateral regional investment agreements that promotes trade.

Large multinational companies are prominent players in GVCs which improves competition in the market which leads to more exports and imports in a country.
However, to realize the fill advantages of global speculation, venture advancement and help strategies need to concentrate on exercises attempted in GVCs as opposed to on enterprises.



Global value chains are realized if well-functioning communications, insurance, finance, logistics, and transport are in place
International value chains created by exporting products and services are enhanced by knowledge centers headquartered in a variety of countries (Gurria, 2014).
Exporting or offshoring inputs to locations where applicable talents and skills can be found create global value chains (Gurria, 2014).
With the addition of exports of local services, the overall services industry has increased the value of trade for several economies (Gurria, 2014).

Part 2

Means of promoting the product.
Legal protection for the brand.
Distribution plan for the product.

Means of Promoting The Product/Service

Search engine optimization concentrates on impacting or rather influencing the perceivability of a site or a site page in a web internet searcher’s unpaid outcomes. This method expands various guests to a site by acquiring a high-positioning arrangement in the item page and can be utilized a method for advancing an association’s items and administrations.
Social media – websites such as Google+, Instagram, Twitter, and Facebook, among others offer the firm a way to promote services and products in a more relaxed setting.
Website promotion – this promotional technique helps to increase exposure of a website to bring more visitors and in the process increase the traffic. Additionally, the company can avail all the important information regarding their services to attract customers.

Promotional strategies

Promotional strategies
Promotional strategies

Apart from the use of social media which has increased in recent days, the company can turn to other strategies such as:
Mail order marketing: the company will offer a free administration or item in return for data.
Item giveaways: the organization will support in-store advancements by giving ceaselessly item tests to bait the purchasing bunch into attempting new items.
Customer referral incentives: encouraging current clients to refer new clients to the store.

Legal Protection For The Brand

  • Registering the Trademark
  • Copyrighting
  • Patenting

Registering the trademark – this involves the registration of a distinctive design, logo, symbol or words that will help to uniquely identify the company and its brands and distinguish them from those of the competitors.
Copyrighting encompasses creating a legal right by the law of a region to grant the company exclusive rights for its use and distribution as the original creators(Gurria, 2014).
Patenting encompasses the creation and development of exclusive rights granted by a nation or a state to a company as the inventor for a limited period in exchange for a detailed public disclosure of an invention.

Distribution Plan for The Product

  • Direct Sales
  • Online distribution
  • Mail order distribution

• Direct Sale is an approach that will help distribute the product because it allows access to the customer along with keeping all revenues under control.
• Online distribution will feature the removal of intermediaries or disintermediation, while still reaching broad groups of potential consumers.
• Mail order will be used as a low-cost distribution approach and a convenient method for reaching consumers.

Survival rate for direct sales companies

Survival rate for direct sales companies
Survival rate for direct sales companies


From the above graph, it is clear that organization that employ direct selling as their main distribution channel stands a high chance of succeeding and surviving the highly competitive market.
Additionally, the company will utilize the technology through online distribution and mail order distribution to provide their services to the clients by examining the books of accounts over the web and sending the updated copies through emails and uploading them to the company databases


Gurria, A. (2014). Creating value in an interconnected world: The role of services. International Trade Center. Retrieved April 29, 2017, from
Fagan, D. (2010). The US regulatory and institutional framework for FDI. Investing in the United States: Is the US Ready for FDI from China, 45-84.
The UK Government. (2016). Overseas business risk – China. Foreign & Commonwealth Office. Retrieved April 29, 2017, from
Fogel, G. K. (2010). Business environment in China: Economic, political, and cultural factors. Lawrence Technological University.[cit. 2014-04-30]