Write a case which deals with the decision of how to structure an overseas operation and how this decision is affected by a number of variables which among others include the bank internal resources and experience, tax considerations and most importantly the host country''s banking laws. In 1997, Citibank was still at an early stage in its China entry strategy. It was one of the strongest foreign banks operating in the People''s Republic of China but as a foreign bank it had only limited market access. It was only licensed to provide corporate banking services to foreign invested enterprises and to operate branches in only three of the 24 Chinese cities open to foreign banks. In order to grow beyond these three cities and to expand from corporate banking to the large and potentially lucrative domestic retail banking business, Citibank needed licenses from the central bank. Citibank''s goal is to be one of the first banks to get those licenses. Although this is not a question and answer excercise the questions below, will help you structure your presentation. Please, be sure that you address each one of these issues in your presentation: 1. What were the reasons for China to open banking to foreign banks? 2. What are Citibank''s competitive advantages in foreign markets? 3. What is Citibank''s world wide strategy? 4. Describe Citibank''s Global Relationship Banking strategy 5. Describe Citibank''s Global Consumer Finance strategy. 6. What is Citibank''s preferred legal structure when operating in foreign countries, and what was the opinion of the Bank''s executives in China concerning Citibank''s possible acquisition of a loacal financial institution? 7. Describe the evolution of Citibank''s presence in China after 1940 8. What was Citibank allowed to do in China in 1997? 9. In December 23,1996 the People''s Bank of China (PBOC) -central bank- granted Citibank permission to do local business, but subject to certain restrictions. What were those restrictions? 10. What is the government of China''s concern with credit cards? 11. Situate yourself in 1997 to answer the following question: Is any possibility in the near term that the Chinese government will allow Citibak to issue credit cards in China? 12. How could executives ensure that Citibank would maintain its first mover advantage in China? 13. How could Citibank''s executives ensure that Citibank would be among the first foreign banks to enter the domestic retail market? 14. If the PBOC were to to decide to open China''s retail market to other foreign banks before granting licenses to Citibank, how could Citibank establish its dominant position in a retail market?