Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: State Owned Enterprises U S Dollar - 2,649 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

China, with a population of more than one billion people, is a country full of marketing potential. With so many possible consumers, it would seem like any product could reach its target audience. However, with a country so rich in history and culture, there are many factors to be considered by marketers. Some of the most important and influential elements (the monetary policy, currency system, market agreements, and environmental factors of the country) must be further examined. Monetary Policy: A brief history of China's financial system is necessary at this point. In 1949, the Chinese Communist Party (which had been established about thirty years beforehand) overthrew the Kuomintang government and subsequently seized control of the economic and financial markets in China.

The first major change made by the CCE, and was a unification of financial and economics affairs. Until 1950, these two sectors were handled individually. For financial purposes, the Chinese central government created two plans. The first of these was a state physical plan, which consisted of the expenditures and budgets of all government departments, state-owned enterprises, cooperatives, and communes. The second was a credit plan, which contained specific blueprints as to how the implementation of certain projects in the physical plan would take place. The People's Bank of China effectively served as a liaison in matters of the credit plan.

The Bank distributed funds to economic sectors based on information revealed by the credit plan, and acted as a symbolic auditor to ensure that the budgets matched the amount of funds spent during that time period. The People's Bank also had the responsibility of ensuring that unspent cash was deposited in a state bank, and maintained supervisory status over most financial matters. Although the specific procedures regarding the physical and credit plans changed, most of the principles described above went unchanged until the 1980 s. In 1983, the State Council of China issued a resolution, decreeing that the People's Bank of China was to be "a national institution through which the State Council directs and administers financial operations of the whole country, and it is the central bank of China." The State Council indicated that there were four main functions to be performed by the PBOC. First, the PBOC was to provide money, credit, and other finances for the purposes of macroeconomics. Second, the PBOC was required to enforce any and all laws regarding the financial stability of the country.

The third stipulation was that the PBOC was to be the control for any indirect measures relating to financial stability, including deposit reserve requirements, interest rates, and the like. The last primary function of the PBOC as decreed by the State Council (and, essentially, the most important and tell-all task that the PBOC was to enforce) was to "promote, supervise, and control all aspects of the operations of China's financial market." The words "all aspects" include banks or any non-bank organization. Essentially, this means that the PBOC controlled nearly every facet of the financial system in the country. However, the PBOC cannot function independently, and it receives most of its authority from the State Council. After the State Council, control falls to the Board of Governors, which consists of the following authorities: the president and vice-president of the PBOC, a group of financial experts and consultants, a deputy minister of the Ministry of Finance, a deputy director of the State Planning Commission, a deputy director of the State Economy Commission, presidents of all specialized banks, and the general manager of the People's Insurance Company of China. The People's Bank's president serves as chairperson of this board.

Functions of the Board of Governors include the discussion and solution of problems relating to either generalized or specific financial policies, the evaluation of miscellaneous matters relating to the overall financial system in China, and the formulation of policies regarding mergers, closures, or other matters relating to banks and other financial institutions. Directly under the Board of Governors lies the Head Office of the PBOC, which is where the multitude of functions performed by the Bank take place. The Head Office is located in Beijing, and is broken down into twenty-seven different departments, each with a specified function. Examples of these departments include the Foreign Affairs Department, Administrative Department, General Office, Inspection Bureau, and several others. There are also several branches of the bank; each located in individual provinces, municipalities, and regions. These branches are responsible for performing PBOC functions within their legal and physical boundaries.

From there on, branches are divided into sub-branches or business offices. Although the PBOC oversees most financial operations in China, there are certainly other banks in the country. Specialized banks are an example of this. These banks operate with permission from the State Council in certain business sectors for certain purposes. At present there are six; the Industrial and Commercial Bank of China, and Agricultural Bank of China, the Bank of China, the People's Construction Bank of China, the China Investment Bank, and the Housing Savings Bank. Although these banks play an important role in the financial stability of China, they often do not secure a profit, mainly because of the SOE's reliance upon them for loans.

The roles of these specialized banks can be generally described as follows; to borrow and lend funds, to supervise the transfer of finances in the economy, to aid in credit and settlement transactions, to supervise the wage funds of enterprises that have accounts at that particular bank, and to handle international business. These banks are under the control of the central bank, which generally divides actions up into four categories; namely, credit planning management, management of deposits, management of loans, and management of interest rates on loans and deposits. Each of the six specialized banks in China serves a different function, to be documented below. The Industrial and Commercial Bank of China handles deposits of both enterprises and the general population, loans to enterprises and the general population, cash settlements, investing, the issuing of saving bonds and the like, and everything in between. Since 1989, the ICBC began to handle international forms of financial business, such as foreign exchange guarantees, borrowing in foreign currencies, etc. However, the Bank of China (which establishes branches not only in China, but in other countries) is usually associated with foreign affairs.

The BOC is authorized to handle international gold transactions, foreign exchange transactions, overseas remittances, and more. The People's Construction Bank of China was formed in order to serve a role as fiscal agent. Specifically, this means that the PCBC's role is to allocate funds regarding certain capital construction projects. This specialized bank was actually closed in 1958, which resulted in problems with capital construction products. In 1972, the PCBS was officially reopened, and capital construction continued.

The duties of the PCBC can be divided into four main roles. First, to manage the capital construction fund. Two, to manage financial accounts and budgets for capital construction. Three, to examine annual financial plans of enterprises involved with capital construction. And finally, to manage the budgets of the capital construction itself. The Agricultural Bank of China had a shaky start.

Formulated in 1955, it was quickly closed after almost two years and merged with the PBOC. In 1963, however, the ABC was revived, then again was closed and merged the next year, in 1964. In 1978, the Central Party Committee decreed that there was a need to quicken agricultural production in the country, necessitating an agricultural bank; and thus, the ABC was again reopened, and subsequently became an independent economic unit. The roles of the ABC were to handle loans, deposits, cash transfers, and loans relating to rural government institutions and groups (as well as handling any other financial duties entrusted to it by the PBOC or other banks). It is notable to state that the ABC was the first specialized bank to establish the contract responsibility system, which dictates that the bank must deliver a certain profit to the state annually. The ABC has met these terms since 1988.

The China Investment Bank was established in 1981 as an official financial liaison, which had the responsibility of raising large loans in forms of international exchange, granting small loans to enterprises in China with the intention of capital construction, and performing other tasks relegated to it by the central bank. In addition to specialized banks, there also exist commercial banks. These are modeled after Western banks and are not government-operated; thus, they are not obliged to loan money to enterprises for capital construction. This indicates that they tend to be more profitable than specialized banks. Also, there are a number of foreign / joint -venture banks around the country. However, according to recent sources, the Chinese government may be taking interest in these banks and, subsequently, will try to take control of them.

Also, interestingly enough, there are a number of "illegal" banks set up around the country, known as private unlicensed banks. These banks trick investors by dictating high interest rates, then rock lenders with exorbitantly high lending rates. Nevertheless, commercial or specialized, banks in China are usually required to put 13 % of their deposits in the central bank. However, the central bank does not specifically use this reserve for any purpose other than that; as a reserve. As one may have guessed from reading above, Chinese banks are certainly the largest banks in the world regarding actual assets. In fact, a future estimate of market capitalization for Chinese banks could number upwards to 190 billion dollars.

However, the manner in which China runs its banks could be seen as a step down rather than a step up. Most financial matters are strictly run by the government, most banks are government-owned, and interest rates are stringently regulated. Instead of having banks fulfill market criteria, the Chinese government instead uses the banking system as its own tool, as leverage in order to more effectively implement government policies, particularly with state-owned enterprises. Chinese banks do not often secure a high profit, and the stipulations for specialized banks often include having to loan money to enterprises in China for the purposes of capital construction. Statistics and studies indicate that nearly ninety percent of investment funds are granted to state-owned enterprises, where roughly seventy percent of China's population is employed. This, the necessity of loaning money to the SOEs, undermines the banking system's ability to secure a profit.

In addition, most of these state-owned enterprises are often unprofitable. In short, it is likely that without reforms and a loosening of government control, Chinese banks will fall short in the profit sector. In order to integrate Chinese banks into a national standard banking system, the Chinese government should carefully consider a number of steps. Firstly, independence of the central bank is required. This is already taking place, as the Chinese government has divided the PBOC into nine regional branches, each with the power to carry out financial policy. As stated above, the continuous loaning of money to state-owned enterprises is also a problem.

However, the Chinese government is taking steps, such as donating 270 billion yen into banks to help bring them to an international standard. A number of banks, specifically ones that are not securing a profit, should be closed or declared bankrupt, as there is no other reason for them to be open in the first place. Currency System: Turning our attention to the currency of China, copper and iron were used but found to be too heavy to carry and transport, and copper was becoming scarce. In the ninth century, China came up with the invention of paper money.

It was originally known as "Flying Money" because it was so light compared to the heavy coins previously used. It also was said that it could "fly" out of your hands. In 1024 the Song government took over the printing of paper money and made official certificates used for currency. In Chinese "Renminbi" means "People's Currency. " The Renminbi is the sole legal currency of the People's Republic of China. Chinese currency is based on the decimal system, and consists of paper and coinage.

The smallest coin is one fen, ten fen make up a jiao (also called mao) and ten jiao (or mao) make up a yuan. The paper form of Chinese currency comes in ten denominations: 1 jiao, 2 jiao, 5 jiao, 1 yuan, 2 yuan, 5 yuan, 10 yuan, 20 yuan, 50 yuan, and 100 yuan. These denominations can all be seen on the following pages. A different set of Chinese characters is used for numbers on banknotes and other financial dealings. The Chinese use this system because ordinary Chinese numbers are easy to write, and therefore easy to forge. As in most countries, the pictures on Chinese currency have a political message.

Portraits appear on the front of the currency. Pictures of famous Chinese scenery, such as the Great Wall appear on the reverse side. The 100 -yuan note has pictures of four of the founders of the People's Republic of China. From right to left these are Mao Zedong, Zhou Enlai, Liu Shaoqi, and Zhu De. Money exchange is sponsored by The Bank of China and is set up in airports, hotels and tourist stores. No foreign currency is allowed to circulate in China.

Illegal selling of foreign exchange is not allowed. Travelers may exchange foreign currency cash or checks at Bank of China offices or exchange counters at the published exchange rates. These bureaus would issue a foreign exchange statement, which shall be valid for 6 months. The State Administration of Exchange Control formulates the exchange rate. As a result, the exchange rate is the same wherever you change the money. As of March 22 nd, 2002 the exchange rate is as follows: U.

S. Dollar / Chinese Renminbi 0. 1208 Chinese Renminbi / U. S. Dollar 8. 2768 It is necessary to show the form that you received when you change RMB back to foreign currencies.

Market Agreements: With the vast landmass and tremendous population, China is an enormous player in world trade. In 1999 alone, China's exports reached $ 194. 7 billion, while their imports totaled $ 158. 5 billion. With these kinds of numbers representing China's trade volume, their trade agreements require very special attention. And lately, it seems as though China has been doing a lot of this. In September of 2001, China took a large step in developing economic relations and trade cooperation with other countries when they joined the World Trade Organization (WTO).

As of January 1, 2002, the WTO had a membership of 144 countries. With headquarters in Geneva, Switzerland, the WTO is a global organization dealing with the agreements and disputes of trade between nations. Because their economy has been steadily improving over the past two decades, China wanted the stability and assurance to keep this growth long-term. By joining the WTO, China will no doubt be a paramount power early in this century in relation to trade. Before China joined the WTO, high tariffs and other import restrictions kept many countries' products out of China's market.

Joining the WTO will mean much easier market access into China from firms around the world. And because of China's continual economic growth, major multinational companies from around the world will have great interest in investing in China. China's entrance into the WTO should create nondiscriminatory trading rights between local and foreign commercial operations and the reduction of monopolistic state trading practices. China had been campaigning for fifteen years for entry into the WTO. Their large involvement in the world's trading patterns led to many major trading entities being interested in their acceptance into the WTO. China's top three trading partners from January to September of 2001 were Japan, the United States, and the European Union (EU) respectively.

These markets, and China, are the largest and most appealing markets in the world. In o...


Free research essays on topics related to: u s dollar, central bank, state owned enterprises, board of governors, people republic of china

Research essay sample on State Owned Enterprises U S Dollar

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com