China is the largest country among the four emerging economies of the world and other three countries include Brazil, Russia, and India. It is the fastest growing economy among all these four countries. …
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China is the largest country among the four emerging economies of the world and other three countries include Brazil, Russia, and India. It is the fastest growing economy among all these four countries. Data for 2011shows growth rate of China has outpaced peers with sharp contrast in GDP, merchandise export and GDP average growth rate as shown in the image below: China is expected to maintain the growth momentum and outpacing its peers even G7 countries over years in future for many reasons with increase in middle class being among the leading ones. Rising middle class refers to increase in income bracket of large number of people. This trend has a constant positive growth projection to year 2050 as shown in the image below; hence, it can be predicted that there would be increasing opportunities of investment in China. To mention, the world’s largest coffee shop Starbuck has also planned to expand in the more 70 smaller cities of the country (Bloomberg, 2012). This report analyzes China as an investment opportunity for a coffee house and for this purpose; the report will analyze the macroeconomic factors that could influence the business in the country. The report discusses about the economic, financial, political factors along with historical events that could impact the business and its geographic location that could influence the business in the country. At the end, the report analyzes the overall risks that businesses could face while starting a business in China. (Global Sherpa, 2011) (Global Sherpa, 2011) ECONOMIC STRUCTURE, INDICATORS AND RISK ...
This slowdown has been controlled by the targeted stimulus. For instance, construction of 36 million social housing units, support for SMEs in Wenzhou, bonuses cut down in the automotive sector, and subsidies on purchase of household electrical appliances etc. All these factors have supported the economic situation despite having troubles with export (Coface, 2010). FINANCIAL STRUCTURE, INDICATORS AND RISK Financial factors other important influence the businesses. Risk rating for the country is as follows: (Coface, 2010) However, access to finance for SME is difficult as banks are reluctant due to string of defaults as the main risk. Also overall strict policies have been imposed on banks for credit giving to avoid misallocation of resources etc (Coface, 2010). The overall financial figures are positive as investment in the country has increased, poverty level has decreased etc. The coffee shop market is expected to grow by 55 percent and it would reach to 4.5 billion Yuan ($714 million) in 2015 from 2.9 billion Yuan last year in 2011. To share this benefit, global coffee competitors such as Starbucks of US and Luigi Lavazza Spa, an Italian coffee company have entered and planned expansion in major and minor cities of China (Bloomberg, 2012). POLITICAL STRUCTURE AND RISK China has been mainly a socialist country. However, the country has accepted the capitalism mode of economy but socialism is still what it breathes. The political risk refers to intervention of country’s government in the business affairs of the foreign person or a company that is doing business in the country. China is usually accounted for this political risk and its government has already once considered the nationalization of industries in 1949 (China Risk Management, n.d.).
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Their workforce is mainly agricultural at 74%. They have free and compulsory education through eighth grade. There is also significant political instability with frequent civil unrest. Natural disasters and sociological diversion promote frequent epidemics of infectious diseases and parasites.
Your paper has shown some evidence to suggest that the baby-boom retirement will have a negative effect on financial asset returns, but it does not support the claim that it will cause a dramatic decline in stock prices or returns. Make an attempt to choose appropriate variables based on the existing empirical and theoretical literature on the economic and demographic determinations of stock returns mostly by Geankoplos, Magill and Quinzii for a strong argument in future.
Investment Analysis Report: Amazon versus eBay. Before making an investment recommendation, it is necessary to examine the stock performance of both businesses, gain insight into recent events occurring within the business model of both firms, consider an in-depth analysis of the financial position of the firms, and fully understand the company backgrounds and their products and services.
The acquisition is to support Amazon’s growth in terms of market development as well as market penetration for facilitating more customers efficiently with wider number of products . The impact of this acquisition on the profitability and income statement of Amazon as recorded in annual statement is as follows: Kiva 2012 2011 sales 61,093 48,077 Change In Sales 27.07% Net income -39 631 Change In NI -106.18% (Amazon, 2012) Acquisition of Kiva has positively impacted sales with US $ 61 million; however, the impact on Net Income was extensively negatively and accounted for a net loss of US $ 62 million from KIVA raising total loss by 106% (Amazon, 2012).
2013 pg 182). This operation is sometimes a risky one though undertaken by the entrepreneurs due to the nature of their jobs, which involves very complicated decision-making and risk taking practices. Taiwan, one of the technologically, social and politically developed countries will be one of the best regions as an Australian to develop this kind of foreign direct investment.
Some clients invest a part of their savings in different avenues such as banks, capital market instruments, money market instruments, mutual funds, derivatives etc. The most common objective however is to maximize their return on investment. As the financial manager researching investments for clients it is important that research is conducted in line with the expectations and investment goals of the client.
It is long-term exercise that has a potential of making an enormous contribution to energy conservation and environmental health internationally (EU SME Centre, 2013).
While green building is advanced in Australia and Europe, it is at the first stage
In conclusion, FDI may be beneficial to countries. It also has many potential risks. Despite having risks, it is worth taking a chance since the risks are reversible through financial transactions. To enhance economic growth, it is crucial for countries to encourage both foreign and domestic investment through creating a favorable investment environment.
The American system has nurtured products of high quality due to the exceptional and outstanding engineering skills provided by strong structures put in place to tap the best technology for eventual development of
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