Corporations with lots of cash and doing little spending Essay - 1

Corporations with lots of cash and doing little spending - Essay ExampleWith companies lying close to their true financial positions with series of financial scandals that followed after another, you cannot blame people if they distrust the financial root word in this country. It will take time to regain that confidence. So it is not a wonder if companies and investors equal are very cautious in investing here in the United States. chinaware on the other hand, does not have that problem. Their economy has been registering more than 10 % in GDP for more than 15 years with its financial foodstuff always on a steady rise. We also have to repute that China is an emerging food market that came from decades of isolationist communist rule. That means that its market is relatively unexplored compared to the maturing market in the United States and Europe. In addition, a quarter of the worlds population is in China so we can only imagine how big the market is and along with it is the pr ofit potential for patronage who will corner a share of that market. So if a certain economy or community has that much money lying around and has to reinvest, that money will natur entirelyy look for a market that yields higher return with relatively lower risk. It will not be a surprise if all roads for investors will lead to China given the potential of its market. Do not forget that our computer address rating has also been just recently downgraded and that is not an incentive for investors to keep their money here.The case of San Francisco-Oakland bay laurel Bridge constructions outsourcing of its massive cable, key sections of the iconic tower and deck to China that could nitty-gritty to $400 million dollars may look unpopular and insensitive with a 12 % domestic unemployment, except it makes economic sense and sound fiscal policy for the State of California. It is more cost-efficient to have it sourced overseas than have it done domestically. Bob LaVenture, a District D irector for the United Steelworkers Union admitted it himself that there is no way