Globalization of China vs. United States Research Paper

Globalization of China vs. United States - Research Paper ExampleUS firebrand Corporation, established in the course of instruction 1901, is one and only(a) of the biggest integrated domestically owned nerve companies of US. The companys customer base is diversified in global markets including Central Europe and Canada. It was declared as the thirteenth largest brace producing company in the land in the year 2010. The globalisation of industries in US is pass judgment to increase the profitability of the company in future due to growing learns in the emerging economies such(prenominal) as China. Baosteel, established in the year 1978, was declared as the 2nd largest steel producing company in the world in 2011 and has demonstrated excellent performance in recent years irrespective of retardant in demand in the global market. From the pecuniary statement analysis of the US Steel Corp. it toilet be said that US Steels production capacity exceeds its total sales leash to un sold inventory. Steel sector is already a alternate(prenominal) sector in the sense that the demand for the steel products vary in every quarter. Globalization in China in expected to avail the company in diversifying its products into other economies. In addition, the companys mass production will friend it to reach economies of scale in future that will further help to export steel at cheaper rates making US domestic steel industry more competitive. The study aims to analyze the financial statements of the two companies and provide a comparative analysis by steeplighting key areas of concern, impact of globalization in US and China and recommend steps that should be taken to ensure profitability in competitive environment. Introduction The steel industry is one of the nearly important industries of the economy and is also considered as an important indicator of economy. It plays a major in the development of oerall economy and infrastructure. The application of steel is used in many an(prenominal) industries such as construction, automobiles, machinery, transportation, and many others. The global steel output was over 1547 million tons for the year ending 2012. The most important characteristics of the steel industry are that it is cyclical and highly fragmented. The steel industry has experienced superior growth during the last two decades but subsequently the global financial crisis, the industry suffered sluggishness in demand. In order to manage operating risk, many companies have diversified their operations in emerging economies where the demand of steel was not affected by global recession. Company Analysis Baosteel Group Corporation Baosteel Group Corporation (also known as Baosteel) is one of the iron and steel largest company of China. It was established in the year 1978 and its head quarter is in Shanghai, China. It is the worlds 2nd largest steel producer following ArcelorMittal in terms of aggregate output. In the year 2012, the company w as awarded 197th rank in Fortunes Global 500 for ninth consecutive year. It was also rated by Fitch, S&P, and Moodys as A3, A, and A- respectively in the same year. Baosteel was also identified one of the most admired company in the world. The company primarily operates in the iron and steel industry and produces high quality steel that adds value to other industries. The main products of the company are stainless steel, special steel and carbon steel. The company reported approximately 44.2 million tons that helped it to earn over RMB 18.10 billion. Hence, it was ranked as the