International Corporate Finance College Essay Example | Topics and Well Written Essays - 2000 words

International Corporate Finance College - Essay Example 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. Culture: In China, business meetings are often very slow, and the businesses are built on assurance of a good relationship. The person in charge is addressed most respectfully, and refusal of ethnic or exotic food or drink is considered as a slight. All business done in China will need to be programmed for a long term since it takes a while to establish trust and run the enterprise in the Chinese landscape. Business deals and negotiations are better done with the presence of a local partner who not only deals with the corruption in the government sector but is also accustomed to dealing with local labour and mitigates risks due to cultural differences. Economy: China's economy grew at an average rate of 10% per year during the period 1990-2004, the highest growth rate in the world. China's gross domestic product (GDP) grew 9.3% in 2003, and even faster, 9.5%, in 2004, despite attempts by the government to cool the economy. China's total trade in 2004 surpassed $1.1 trillion, making China the world's third-largest trading nation after the U.S. and Germany. The Chinese government is firmly committed to economic reforms and opening up to the outside world. Government policies have moved markedly towards allowing market forces influence economic activity and have been reformed in order to assist in the progress of the price determination, foreign trade and investment, exchange rates, entry barriers, internal markets etc. All this seems to have paid off and at this current rate of growth China is supposed to have the fourth largest GDP by 2010. The immediate years to follow are crucial for China. China's accession to the World Trade Organization (WTO) in 2001, China presents a vast market that has yet to be fully tapped and a low-cost destination for export-oriented production because it is labour intensive and has a surplus of labour due to its enormous population. Environment and infrastructure: China is one of the most polluted nations in the world due to its rapid industrial advancement at the cost of its natural resources. A 1998 World Health Organization report on air quality in 272 cities worldwide concluded that seven of the world's 10 most polluted cities were in China. It is no surprise that respiratory and heart diseases related to air pollution are the leading cause of death in China. Most of its rivers are polluted to some degree and half of its population does not have access to clean water. Water scarcity is a rampant problem. China's leaders are increasingly paying attention to the country's severe environmental problems. In recent years, China has strengthened its environmental legislation and in 1999, China invested more than 1% of GDP in environmental protection, Beijing is investing heavily in pollution control, as it is the host of the 2008 Olympiad. Education: China was long lagging behind India for its mastery over the English language.