Sample Essay

The Chinese Yuan has been steadily rising against the US Dollar since 1994 till 2008 as in 1994 the exchange rate was 8.64 and it has been gradually rising with the current rate being 6.95 and the expected rate for 2010 being 6.84. This means that the value of $400 million invested in China would translate into 2,732 million Chinese Yuan (, 2009). As the exchange rate is getting much better for China, the cost to US businesses in the future would be costly as compared to now.

The hindrances that can be faced by businesses in the long run are the changing economic policies and the recent shortfall of skilled labor (, 2009). The anticipated benefits of doing business in China are discussed in this report with special reference to savings and the cost of doing business.

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