We normally think of currency and banking risks as being something confined to third-world or developing countries. But events in the past few years such as the Euro crisis or the financial crisis in the United States have shown that not even the wealthy, developed countries are without risks on the financial side. So it is important for any company doing business in your country to carefully consider the risks that they face.
After you’ve done some research about financial issues in your country, write a 2- to 3-page paper covering the following issues:
The currency of CHINA. Is it stable? Does the exchange rate fluctuate a lot?
The banking system in CHINA. How safe is this system? Any recent banking crisis in your country?
Overall does the financial system in CHINA make it easy or difficult to do business? What kind of steps would you recommends for a company doing business in your country to hedge or minimize its financial risks?