International business Assignment 2022

International
business

International business 1
Contents
Introduction............................................................................................................... 2
Evaluation of the activities............................................................................................. 3
Development of IB activities over time............................................................................. 4
Construction of value chain........................................................................................... 6
Recommendations....................................................................................................... 7
References............................................................................................................. 9

International business 2
Introduction
HSBC is one of the globe’s major banking and financial service administrations. The bank is
serving to more than 40 million customers and it is made possible by its 4 international
businesses such as retail banking and wealth management, international banking and markets,
commercial banking and, global private banking. HSBC is having a business in more than 65
nations and regions in Asia, Europe, North America, Latin America, the Middle East, and
Africa. HSBC is identified to be seventh-largest bank worldwide. The bank is having
headquarter in London. The product offerings of HSBC has been realized in the form of
wealth management services, life insurance, Demat services, fixed deposits, support services,
mortgage, loans and more.
HSBC was entitled after its creation associate, The Hong Kong and Shanghai Banking
Corporation which was formed to back the increasing profession between India, Europe, and
China. Just after the establishment, HSBC began initiating branches in order to enlarge the
services to propose customers. Trade finance is a robust element of both local and global
businesses of the bank. Limited HSBC aims to be where evolution is, linking clienteles to
opportunities, empowering companies to prosper and economies to flourish and eventually
assisting people to fulfill their anticipations and expectations. HSBC is registered on the
Hong Kong, London, Paris, New York, Bermuda, and Paris stock exchanges and the shares
are held by more than 200,000 shareholders in 130 nations and territories. By the end of the
19th century, HSBC was identified to be a leading pecuniary organization in Asia. In the 20th
century, HSBC faced changes and challenges due to the global battles to the excessive
depression of the 1930s. The bank has been converted from an imported provincial bank into
the globe’s foremost financial organizations by the end of the era made possible by
acquirements, growth, and divergence. A fresh holding company, HSBC Holdings Plc was
made by HSBC in 1991. A successful bid was made by the bank to obtain complete
possession of Midland Bank in 1992. 1n 1998, HSBC adopted a combined brand by
exhausting HSBC and hexagon character with the goal of augmenting gratitude of HSBC by
the shareholders, customers, and employees thru the domain (Lai, and Chen, 2019).
HSBC at present is the globe’s number one project consultant and infrastructure finance
house. It is a top advisor in Sub-Saharan Africa. HSBC arranges and finances public and
private sector plans in emerging nations and function with the local and provincial banks on

International business 3
the matters like infrastructure and project sponsoring, partaking its proficiency, experience
and constructing its skills base. The international flow of trade, finance, and data are
anticipated to grow as the globe grows more linked. The international middle classes are set
to magnify further led by Asia. The significant investment is required globally to assist the
evolution to a low carbon economy. These long term trends have strengthened the strategic
advantage as a leading global bank. More than half of the revenue is generated by the bank
through the international clients. HSBC is having accessibility to the extraordinary growth,
emerging markets in Asia, Middle East and Latin America proposing a stage for the long
term evolution. Add on, the balance sheet of the bank is continued to offer an excellent base
for the sustained dividend (Kraus, et al. 2018). On the other side, HSBC bank is having
subsidiaries in the form of HSBC bank Canada, The Hong Kong and Shanghai Banking
Corporation Limited, HSBC Bank Plc, HSBC UK bank Plc, Hang Seng Bank Limited, HSBC
France, HSBC Bank Middle East Limited, Group Financiero HSBC and more.
Evaluation of the activities
The trade war of Trump has hit the US economy more than China’s. HSBC has been
influenced by the trade war initiated by Trump. China has been benefitted from the robust
import demand in most of the trading partners except the US. Both Washington and Beijing
have located tariffs on hundreds of billions of dollars’ worth of each other’s goods. HSBC
faced negative outcomes in the US than in China. On the other side, China was advanced
from robust import demand in most of the trading partners except for the US and Germany.
More pain was felt in the US from Trump’s trade war than Chinese customers and businesses.
The tariff was implied on hundreds of billions of dollars’ value of products between the US
and China (Lee, and Tang, 2017). It indicated to the emergence of the threat of growth across
the global economy. On the other hand, the trade war coupled with the underlying slowdown
of China. It reflects that a significant trade deal will be done over the next few months. One
problem faced by the US is that several large export markets are not growing quickly. These
are not just US products which are imposed retaliatory tariffs by China and as a result, export
growth of China is weakened. But US exports to China have represented some softening
across the board (Kano, 2018).
Another instance which impacted HSBC is changes made by China in the bank loan rates. It
left out to the bank out of rate-setting club. China changed its system for the banks to decide
lending rates in order to the central bank to efficiently influence and control interest rates.it is