The closing case describes China Mobile's expansion plans and efforts to raise the capital necessary to implement them. China Mobile, based in Hong Kong, is one of the world's largest mobile telephone service providers. China Mobile, concerned about the new competition it might face if China joined the World Trade Organization, wanted to quickly establish itself in seven more Chinese provinces. To do so, the company needed to raise $32.8 billion. China Mobile made the decision to raise the capital in the global capital market.

problem 1: Why did China Mobile feel it was necessary to issue equity in markets outside of its home base in Hong Kong? What are the advantages of such a move?
problem 2: Why did China Mobile price the bond issue in U.S. dollars instead of Hong Kong dollars?
problem 3: Can you see any downside to China Mobile's international equity and bond issue?