Fung has stated that in the late 1970s and early 1980s, government policies are characterized by setting new regulations to permit joint ventures using foreign capital and setting up Special Economic Zones and “Open Cities”. At the second session of the Fifth National People’s Congress in July 1979, The Law of the People’s Republic of China on Joint-Ventures using Chinese and Foreign Investment was adopted, granting foreign investment a legal status in China (2002, pg 3). What does joint venture mean? It means a legal unit or entity that is usually formed between two or even more parties in order to share the formation risk and to use joint economic activity. Those parties, who agree to create a new unit or asset contribute an equity. Then these parties traditionally share in the costs or expenses, revenue, also assets and the enterprise total control.
The venture, however, may be only for one special project – when the joint venture is seemed to be referred – or a business relationship that continues. It is obvious that the definition of joint venture has its main mission to refer to the entity’s purpose, but not to refer to its type. Thus, joint venture might be a corporation, a LLE (or limited liability enterprise), a legal structure (for example, partnership or other), being influenced by such issues as tort liability and taxes. Joint venture is traditionally formed out of some country’s own territory and between countries that have completely various and different legal systems, mostly in the countries, which are called “developing”. They are formed in order to minimize both political and business risks. Wholly Foreign Owned Enterprises
Talking about Wholly Foreign Owned Enterprises (WFOE) it becomes obvious that they can be defined as a “limited liability company established within the territory of China through foreign investment only” (<>, Wholly Foreign Owned Enterprises, pg 1). Wholly Foreign Owned Enterprises are definitely become more and more popular and necessary through the decades. The reason of such event can be that the foreign organisation has total control over the just established business because none of Chinese investors take part in it. Although at a first glance this total control may look rather tempting to investors from foreign countries, they should mention and should not miss that the Chinese partner lack usually puts a hard strain overall process of the development of perfect relationships between staff members, which is really important in China and its business, as well.
However, Wholly Foreign Owned Enterprises’ duration is traditionally ranges between 15 and 30 years, including the opportunities of extension to 50 years or even much longer. Further still, the place where the firm is going to be located and the type of industry influence on the capital requirement needed for the Wholly Foreign Owned Enterprises’ establishment, which are registered. Certainly, the minimum amount numbers $1 million (RMB), and roughly $100 thousands. Definitely, one of the most important aspects of the Wholly Foreign Owned Enterprises is a business scope. A WFOE have an opportunity to only operate within it, however, as set power in its license. custom research paper Mergers & Acquisitions
Mergers and Acquisitions are seemed to refer to the nuance of a corporate strategy and finance, corporate management that is seemed to deal with such process as selling and buying, to deal with a mix between different firms that may aid, help (or even finance) an organisation that is growing. An Acquisition (or it can be called as a “takeover” or a “buyout”, “merger”) is seemed to be defining as the buying of one firm (which calls “target”) by another one. This term can also be divided in to a friendly Acquisition and a hostile Acquisition. DePamphilis has stated that in the former case, the companies cooperate in negotiations. Acquisition usually refers to a purchase of a smaller firm by a larger one. Sometimes, however, a smaller firm will acquire management control of a larger or longer established company and keep its name for the combined entity. This is known as a reverse takeover (2008, pg 740). There is another one type of acquisition is a reverse merger. Talking about distinction between mergers and acquisitions, should be mentioned that both terms mergers and acquisitions are usually uttered in the common breathe and they are seemed to look like synonymous, but they mean rather different things. When one organization is seemed to be taken over by another and one be established as new owner, this calls an acquisition. Traditionally, merger is process when two organizations (they are usually the same size) make an agreement to work together, becoming a totally new organization and remain divided ownership.
2.2.2 Portfolio Investments
To understand this topic better I am sure it will be appropriately to mention some examples of portfolio investments. They are such purchases of foreign organization’s shares, of bonds that are issued by a foreign country, and one of stocks that are in the foreign firm, at last, the acquisition of foreign country’s assets. There are three nuances or aspects, which influence on and affect international portfolio investments: taxes rates on dividends (interests), interests and exchange rates. Thus, let me start to explain main points and the definition of the term.
2.2.3 Definition
However, portfolio investment is seemed to be a kind of an investment that was made by people, which are not certainly interested in the management involvement of the organization. This definition is usually used when one means the foreign investment in any country, thus, portfolio investments can be divided on to such categories: direct investors (who are seemed to set up country’s operations) and portfolio investors (who are more likely to buy debts and also listed shares). In addition, the process of such dividing of term is not always accurate and correct, because a foreign investor may seemed to be a portfolio one, but he can just launch a takeover of one local firm and buy listed securities because he only have to do so. There are several steps describing how to create an portfolio investment, but I am sure it is not needed in our situation to understand the topic.

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