The Examination of Financial Data for China
Cheryl Jackson
MBA/591
Global Management Seminars in Problem Solving
Ruth Todd, Instructor
November 27, 2006
University of Phoenix
The Examination of Financial Data for China
Introduction
The purpose of the examination of China's inflation rates regarding consumer price percentage changes, exchange rates concerning the value of the yuan, and the country's interest rates relating to foreign investment is to demonstrate that Riordan Manufacturing can benefit from the growth opportunity of international expansion. The company also will be able to finance its expansion project and still make a profit.
The scope of the study will include the valuation of the balance of trade between the United States and China and how changes in China's industrial production positively affect the balance of trade between the two countries as well as country policy. In a report on the global role of multinationals, the Organization for Economic Co-operation and Development points out that for some countries, production abroad by foreign subsidiaries of national businesses was comparable to total exports from these countries.
Inflation Rates
The country profile and economic data reports indicate that China's retail sales have increased by 13.3% and growth is forecasted to continue throughout 2006 by 12.9%. This growth expansion will be driven by an increase in access to consumer credit, expansion of the retail sector and increases in rural incomes. To this degree China's inflation rates are reflected in its GDP, $15,665,430 in reminbi and $1,908.942 US, which is higher than it has ever been. This has translated to average real GDP per ca ...