Disney looks to China for international growth

With profits down 19 percent in its theme parks, the Walt Disney Company (DIS) needs to expand internationally in order to grow in these tough economic times. So where is it looking? Shanghai, China will be the next location for a Disney-style theme park. If built to full capacity, the new park could rival Disney World in Florida, which attracts 45 million annual visitors.

The park will cost $3.6 billion to build and Disney will own about 40 percent of the Shanghai resort. The rest will be owned by a holding company formed by a consortium of Chinese companies selected by the government. This park will set Disney on the right path to meet its goals of generating about 50 percent of its annual profits from overseas sales. Right now, international sales represent about a quarter of revenue and operating income.