Case Scenario:
The firm manufactures a global positioning system (GPS) that sells for $1,000 with cost of goods sold (hardware and software) of 48% of sales.
Compared to the United States, China offers a 6% cost reduction in electronics manufacturing hardware and a 50% reduction in software programming.
Assignment:
You have been asked to lead a team to study and create a report for the executive team the country of China for business opportunities.
Though a group project, your part of the assignment is to study and gather the information outlined below on China.
Assignment
1. Risk is a significant factor. Identify each of the risk factors for China
a) political stability,
b) exposures of transaction,
c) interest rate,
d) operating,and translation;
e) currency exchange rates;
f) currency controls;
g) skilled labor;
h) facilities;
i) infrastructure;
j) China's track record in using foreign direct investment (FDI);
k) And political corruption and roadblocks to establishing a going concern business
2. Please cite all references