A customer holds Microsoft’s Xbox One game console limited edition in an electronic shop in Shanghai on September 29, 2014.

The Xbox One has just launched in China on September 29, 2014. People actually lined up for the box despite the price of 3,699 yuan, which is about $600. The Chinese are paying 50% more.

In China, the prices of the imported goods are always in a much higher price than in other countries. There are several reasons contribute to this issue.

• The first reason I think is because of the import tax. In China the value added tax is about 17% , which is much higher than another Asian country Japan, which only has 5% tax rates.
• Second, because of the gap between the rich and the poor, many Chinese people cannot afford the Xbox but many rich ones can buy it without any hesitation. Increasing demand will lead to a higher price.

Such a high price actually brings both pros and cons.

For pros:

• The most distinct point is protecting the sun-rising industry in China. Because high price makes some consumers less likely to purchase the Xbox, so domestic products may have more chances to attract potential consumers.

For cons:

• Chinese government has a low awareness to control the price over imported goods. It results in the supernormal profit of the dealer. Which makes consumers worse off.

The recent new blackberry smart phone Passport

Blackberry, which once dominated the smartphone industry, now only accounts for less than 1% of sales worldwide.The recent new blackberry smart phone Passport has just launched the market. However, the firm is still away from financial health.

Why blackberry cannot be as popular as iPhone? I think there are several aspects to be considered.

• First, Blackberry’s foreign market is not as wide as Apple does. It is generally acknowledged that China is a big consumer of the smart phones, so in order to gain more sales, it is of great importance to enter the phone market in China. However, seldom Blackberry phones can be seen in the phone market of China.
• Besides, because of the high security of Blackberry phones, the main target customers are mainly government officers and businessmen. So in order to widen the different groups of customers, Blackberry really needs to improve its application softwares, such as entertainment, shopping, video games etc.
• Last but not least, the high price also decreases the number of potential buyers, Blackberry should try to lower its cost of production by either technology or innovation in order to attract more consumers.

In conclusion, there are still many points to be assessed, such as the system, battery and updating resources, etc.

Business ethics is an important thing that the companies must take consider of, as it influences not only the company but also the social welfare of the society.

For example, the CVS caremark stopped selling cigarettes and other tobacco products, instead providing miniclinics and health advice to aid customers visiting its pharmacies. Therefore it exerts positive influences on the consumers as health care is a merit good for them, reduce the possibility for the consumers to get health damage as well. (24% decline of cigarette consumption in Washington because of high tax rate.) However, on the other side, when reducing the amount of cigarettes production, the company suffers, as it had to cut down its selling, so less profit for the producers. (As shown in the article 2 billion decline of selling of tobacco products)

In conclusion, it is the company’s rights to aim at maximize its profit, but when it comes to the moral side, I think the enterprise should consider more aspects when producing goods and services. For example, the health effect on consumers, the influence to the environment etc. Hence, I think they should both take into account of their profit and the effects to the whole society.

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