Security analysis Essay Example | Topics and Well Written Essays - 2000 words

Security analysis - Essay ExampleConsequently, more memory managers from the United Kingdom nonplus made efforts to invest in China since its economic growth rate is signifi bungholetly higher compared to other countries in the world. It is imperative to note that investment fund managers are driven by the potential rate of return from a given region, and this is the motivating factor for choosing an investment destination. Advantages of Investing in China unitary of the advantages of investing in China is the magnitude presented in the potential of its commercialize. Foreign ventures and pipelinees set up investments in order to serve a local market. The market surface and growth rate opportunities are some of the key factors in the determination of an investment destination. Essentially, investors target unexploited markets that are of a significant size with potential for growth. Therefore, countries that have large markets and growth potential are viable investment destina tions. The Chinese people of over one billion people offers a large market for all industrial products (Malkiel et al., 2010). In fact, the huge population has a swell consumption potential that can be harnessed for business gain. In the recent past, the purchasing power of the Chinese population has also increased significantly, scaling up the uptake of goods and services. Therefore, the large population of the Chinese region attracts fund managers to invest in the region due to the potentially huge market that population offers. Imperatively, China is a prime location for any investor to affection financial resources into as the prospect of getting a market for the goods and services produced is high. The infrastructural development of a region has an influence on the economic growth of the place. The availableness of roads, waterways and other forms of transport is a critical consideration in the evaluation of an investment destination. The Chinese administration has made sig nificant investments in the transport infrastructure. In fact, popular investment destinations in China such as Beijing, Shanghai and Guangzhou have a world class transport infrastructure that offers a great environment for investment (Buckley, Wang & Clegg, 2006 p. 145). The availability of resources is an important factor in the selection of an investment destination. Human resource is a significant factor of work for any economic activity. The large Chinese population offers a huge pool of labor force that can be harnessed for economic production. The large population in China also implies that the equal of labor is significantly lower compared to other regions. One of the principles of business investment is the minimization of cost. The relatively low cost of labor in China makes the cost of business operations less than in countries in the European Union (Eichengreen & Tong, 2006). Hence, low costs of operations can offer a business an opportunity to obtain more profits in t he long run. China also has substantial natural resources. Industrial production and manufacturing rely on natural resources to produce goods and products. China has its own oil reserves as well as the largest coal deposits on the globe. The supply of galvanising power is sufficient and affordable. It should be noted that the country has minerals and land which can be harnessed for economic gain. China has adopted policies that encourage openness to foreign trade as well as easy access to internation