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Chapter No 10

Page No: 343, Paragraph 05

"In the international arena, investment planning is not straightforward. Different tax laws, accounting systems, rates of inflation, risks of expropriation, currency frameworks, market segmentation, restrictions on the transferability of foreign earnings, and language and intercultural differences introduce elements of complexity seldom encountered domestically."

The above-picked excerpt from chapter 10 of International Accounting, 7th Edition is one of the most significant lines (sentences) in the book. Many people take investments planning on international level as simple and easy as planning for investing money in local firms or projects. While this sentence clarifies their thoughts that investment planning on the international pitch is not so simple and straightforward. But! Several laws, regulations like tax laws, systems, inflation rates, exchange rates, associated risks, and international policies affect such planning as well as create complexity for planners (Choi, & Meek, 2010). So that is why this sentence has been found a significant one in the chapter.

Chapter No 11

Page No: 394, Paragraph 04

"In a world of floating exchange rates, risk management includes (1) anticipating exchange rate movements, (2) measuring a firm's exposure to exchange risk, (3) designing appropriate protection strategies, and (4) establishing internal risk management controls."

The above sentence in Chapter 11 of International Accounting by Choi, F, & Meek, G has been found the most significant one. Risk management is a complex and lengthy process when performing it in this world of floating exchange rates while many professionals have been found unclear about the steps included in the risk management (Choi, & Meek, 2010). While the above sentence in the chapter covers all four steps taken in the risk management process which is huge and that is why the sentence is highly significant.

Huawei Technologies Co. Ltd

Strengths of Huawei

Based on (Huawei Annual Report, 2018), Huawei has a strong and efficient track record in terms of product development. It is the strength of the company because they give strong focus to innovation in their products.

Strong distribution network on local and international because they have access to all target potential markets.

Strong Cash Flow is one of the key strengths of Huawei. The proof is the investments of funds by the company in new projects (Choi, & Meek, 2010).

Weaknesses of Huawei

The company is poor at product forecasting. The company is poor in this way because the company's inventory is too high than the competitors which create additional costs for the company as well.

Based on the analysis of (Huawei Annual Report, 2018), percentage of net contribution and profitability ratio of Huawei are lower when compare with the industry average.

Inefficient use of the cash at hand. The company does use cash as efficiently as need to be because the assets ratio and liquid asset ratios of the company are not much impressive.

References

Choi, F, & Meek, G. (2010). International Accounting, 7th edition. Upper Saddle River, N. J.: Pearson Education. ISBN: 9780136111474

Huawei Annual Report. (2018). Huawei Annual Report: 2018 Annual Reports. Huawei. Retrieved 4 August 2019, from https://www.huawei.com/en/press-events/annual-report