Financial Management

Karen Llano

American Intercontinental University

Global Financial Management

FIN630- Managing Multinational Operations

March 17, 2013

Abstract

Acme Company with its worldwide possibilities has been thinking about doing some business in China. This is something that needs to be well thought out as well as analyzed. China has many laws and regulations that can affect Acme in its future merges and this is why we need to take a closer look at what are the advantages to having a business merger with this country. Some factors can be essential when this decision is being made and this is where the following paragraphs come into play. By allowing us to see what the benefits are in this decision, we can reassure ourselves that we will be able to have Acme company grow into a prosperous and fruitful firm.

China is known to have one of the oldest continuous civilization and with its over 4,000 years of this history this amazing country names Beijing, its capital, the focal point for its country. The language spoken is a standard Chinese and derives from a Mandarin dialect although most businesses speak the English language. China is also known for its Communist form of government which promotes atheism and constitutes freedom of religion. With many these religions which vary Confucianism despite it not being a formal religion is what is practiced throughout the country. Its population derives from its 1.17 billion people which include almost its 100% of its population being ethnic or Han Chinese. Couples are only allowed to have one child because of this countries strict rule regarding its childbirth (International Business, 2008)

In the import/export sense when doing business with China is the fact that the government has made it so that the administration obstacles has been reduced in order to make this transition seamless.. The government has made an effort to pay off with an increase in exports to countries such as...