Fireworks Industry

Fireworks Industry

Name

Institution

Fireworks Industry

The fireworks industry can be considered to be a growing industry in China. According to Jerry who is an American-Born Chinese, he has been fascinated by the extent the industry have gained large markets in China where the fireworks are being used in occasions, festivals, New Year’s celebrations, weddings and grand openings. In addition, Jerry realizes the firework industry can be lucrative especially when he introduces it to the American culture, thereby, opening a new market for the industry.

If I were Jerry, I would consider investing in Luiyang fireworks industry to be a safe investment. The industry has been in existence since 1000 years ago and as a result, this is a good sign that the company has stable financial records. Having stable financial records for an investor means that the company has high liquidity ratio; therefore, it can guarantee stable capital gains on capital shares that can be bought by Jerry. Another reason why it is good for Jerry to invest in Luiyang fireworks industry is because it is the pillar industry in Luiyang District, accounting to 50 percent for all the jobs available for the total population in China. It is the major world exporter of fireworks which is according to the 2008 year’s report.

In china’s growing market for fireworks and firecrackers, the market has been facing problem because of trying to cut down the costs. The fireworks industries lack proper safety standards for workers who are making the products. As for Jerry, it can be good if he invests in fireworks industry that maintains safety issues. An industry that has high ethical standards is more competitive in the global market than the one that only trades for profit; while ignoring the working conditions of the employees.

References

Jiang, R. (2011). The Chinese Fireworks Industry. Richard Ivey School of Business Foundation.

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