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urce: Nielsen Media Research Going local Financing ? Borrowing from domestic banks Production ? Moving to cheaper areas inland Sales ? Increasing volumes to lower average costs Research and development ? Lower costs and local tastes Mergers and acquisitions Buying out joint venture partners Traditional MA ? Basic market access and expansion ? Stealing a march on foreign petition ? Eliminating local petition ? Acquiring new abilities Not mainstream yet ? Regulations, ? Corporate governance ? Price Persistent headaches China’s business environment 012345678910CanadaUSAHong KongTaiwanSouth KoreaJapanHungaryMalaysiaThailandMexicoBrazilChinaIndiaRussiaVietnamNigeriaBusiness environment scoreSource: EIU Infrastructure and distribution Overburdened physical infrastructure ? Transport congestion ? Electricity shortages Lack of sophistication ? Poor integration of different transport modes ? Regulations on distribution The way forward ? The east coast is better ? Work around regulations ? Piggyback on chain stores Regulation and corruption Regulation ? Central government restrictions ? Local government protectionism ? Red tape Corruption ? Serious problem for foreign businesses The way forward ? WTO opening