International Corporate Finance - Essay Example

Only on StudentShare

Extract of sample
International Corporate Finance

Then the advantages and disadvantages of entering the Chinese market are described and analysed. Finally the comparison of benefits and drawbacks leads to a certain recommendations. The result of the analysis is that Chinese market is extremely attractive for investors; however it contains certain risks and dangers, which should be considered during the strategy development.
China has succeeded in strengthening its economy in recent years. The growth of about 8% annually has become a trend in the last 5 years. Assessment of the year 2004 has shown that overall measures are even better than in previous years. "Gross domestic product growth in the People's Republic of China accelerated from 9.3% in 2003 to 9.5% in 2004, the highest level since 1997, even though the Government took several steps to damp sectors that it considered overheated" (Asian Development Bank, 2005, p.20). The country continues to improve its economic measures rapidly, which of course must be seen as a positive factor when considering investment.
Further on the development of external trade in China is seen by analysts as an extremely positive trend. China has already outrun the Japan to become the third largest merchandise trading country right after the USA and Germany. "Merchandise exports rose by 35.4%, with production at foreign-funded enterprises estimated at about 58% of exports. ...
Download paper


Since China initiated its 'open door' policy at the end of the 1970s, numerous overseas pharmaceutical companies have entered the economy of this populous country. This report analyses current pharmaceutical industry trends in China from the perspective of the foreign investor…
Author : polly96

Related Essays

Corporate Finance College Essay
The Company's principal trading activities are carried out through its wholly owned subsidiaries CNG Hotels Limited, CNG USA, Inc. and Tzell Travel, LLC. CNG Hotels distributes hotel room inventories whilst Tzell is a large United States-based, full-service, corporate travel agency.
7 pages (1757 words) Essay
Corporate Finance Master Essay
Since capital markets are neither perfect nor complete, all of these decisions interact with one another. (Allen & Michaeli, 2005, p.3)
5 pages (1255 words) Essay
Corporate Finance Essay
Where represents the return on security I, is the return on a risk-free investment such as the Treasury bill or government bond is the sensitivity of the return on security I, to movements in the market portfolio, and is the expected return on the market portfolio. (Bodie et al., 2005).
8 pages (2008 words) Essay
International Corporate Finance College Essay
Its population is estimated to be about 1,306,313,812 as of July 2005 making it the world's most populous nation. It has strictly advocated the "One child policy" in 2002 to control its population but the downside of it is that it is now one of the rapidly aging nations in the world. Its population is said to peak to 1.6 billion by 2050 before stabilising.
8 pages (2008 words) Essay
International Finance Essay
Hedging using arbitrage has the desired effect mainly in cases of cross border finance and trading in more than one currency as the inefficiency in the pricing at the market is exploited by the method. In the case mentioned above, the fact that the interest rate is higher in case of the pound sterling as well as the relatively higher premium earned from the dollars justifies the advantages of this method.
10 pages (2510 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!