Assume your company has decided to expand their US business into an Term Paper

Assume your company has decided to expand their US business into an international business. You have been asked by your company - Term Paper Example The country that I would recommend to my CEO for international expansion is China. This is mainly because China is a country that is developing very fast and thus, if the country starts an international branch in China it will be sure to attract a large number or customers (Li, 2010). The economy of China is indeed stable and well performing with a Gross Domestic Product of approximately 7.33 trillion (The College of Staten Island's Modern China Studies Group, 2012). This is a very large and promising figure. Therefore, starting a new branch in the country will assure the company of positive returns. On the other hand, the GDP per capita is approximately $ 9, 100. This shows that the country is highly productive and thus, it is unlikely that the bank will make losses once it expands to China. China has a very large population of approximately 1.35 billion. Therefore, there is sufficient labour for all organizations in the country. Therefore, of the country expands to China, it will b e sure not to have high labour costs, or labour shortages. On the other hand, China has established itself in export and import trade (Li, 2010). Therefore, the country has a large number of economic activities that lead to the need for banking services. Importers and exporters of products in and out of China demand banking services and thus, Victory State bank will be very beneficial to them. In addition, the large number of economic activities in China requires finances. Therefore, the demand for loan services in the country is very high. When the organization expands to this country, it will have a large number of customers demanding loan services. The infrastructure of China is also well developed and efficient (The College of Staten Island's Modern China Studies Group, 2012). This is given by the study of China’s roads, machinery and latest technology. Recent studies show that the country has invested over $ 1 billion to enhance its transport and communication infrastruc ture. With developed infrastructure, the business will also thrive since operations will be smooth and effective (Li, 2010). China is made up of a large number of industries that require banking services. In addition, recent studies show that the growth rate of these industries is approximately 14.5% (The College of Staten Island's Modern China Studies Group, 2012). This is a high figure, which assures the bank that as the industries continue to grow, the demand for banking services will increase and thus the bank will grow. On the geographic factors of the country, the country has a climate that favors business operations all through the year. Therefore, the business is sure not to be affected by disasters such as floods and earthquakes. The environment in China has also been well conserved and thus; the organization will have a favorable environment to perform its operations with no environmental issues (Li, 2010). China is a politically stable country and thus, issues of politica l instability will not disrupt operations in the organization. Since China is a communist country, it is unlikely that it faces issues such as political unrest or clashes (The College of Staten Island's Modern China Studies Group, 2012). The regulatory requirements of establishing a business in China are also few and thus, the organization will only require a license and the minimum sum of money required in order to start a bank. The only other laws that the company will have to follow