IKEA IN CHINA ( international business) Research Paper

IKEA IN CHINA ( international business) - Research Paper Example Moreover, there are also possibilities of a Free Trade Agreement. Also, the currency in Qatar is stable and no foreign exchange controls are imposed (Zahra, 2014). IKEA in Qatar has to go through a detailed political insight before establishing their business. Qatar is open to the foreign businesses and the political factors will help IKEA to prevail their policies. The stable currency allows IKEA to carry out their strategy of good quality products in affordable prices. Reduced tariffs and no unnecessary trade restrictions would allow IKEA to carry out their sales without hindrance (Fromherz 112). However, there are certain tender bond requirements and joint venture requirements for international businesses that may hinder IKEA’s smooth growing in Qatar. Moreover, there is an increasing tax on corporate income which may threaten IKEA’s future profitability (Healy 53). Qatar’s socio-cultural factors are highly important in considering the market for international businesses. Qatar has a small population of about 1 million and out of those only one-fifth of the population is Qataris while four-fifths are foreign workers. The resources, stable government and political system, and the strong economic system are leading to a population growth gradually. Qatar has a diversified culture with many locals and foreigners from South Asia, Iran, Jordan, Egypt, and other countries. The reform minded government is currently spending heavily on the infrastructure and construction sectors to improve the lifestyle and standards of living of the people (Algethami, 2013). The affect of socio-cultural factors on IKEA’s strategy will be notable. These are important as they would determine the acceptance of IKEA and their products in the local market. IKEA will face challenges as they will have to fulfil the demands and expectations of locals who belong to different cultures rather