Assignment of International Management
Assignment of International Management
DUE DATE
TOTAL MARKS
: 10
China Mobile
Summary
The assignment explores the China Mobiles expansion plans and efforts to raise the capital
necessary to implement them. China Mobile, based in Hong Kong, is one of the worlds largest
mobile telephone service providers. China Mobile, concerned about the new competition it
might face if China joined the World Trade Organization, wanted to quickly establish itself in
seven more Chinese provinces. To do so, the company needed to raise $32.8 billion. China
Mobile made the decision to raise the capital in the global capital market. Solution of the
assignment can revolve around the following questions.
SPECIFIC INSTRUCTIONS:
China Mobile attached and answers ALL the questions. Please answer questions in a structured
manner. Clearly number your answers. Include examples and applications if requested.
References are to the prescribed textbook: International Business: Competing in the Global
Marketplace, New Edition by Charles W.L.HILL (McGraw-Hill/Irwin, 2005)
QUESTION 1: Why did China Mobile feel it was necessary to issue equity in markets outside of
its home base in Hong Kong? What are the advantages if such a move?
QUESTION 2: Why did China Mobile price the bond issue in U.S. dollars instead of Hong Kong
dollars?
QUESTION 3: Can you see any downside to China Mobiles international equity and bond
issue?
QUESTION 4: Why has the global capital market grown so rapidly in recent decades? Do you
think this growth will continue throughout the next decade? Why?