Firm is considering setting up operations in China
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Get it written →In order to be competitive in local markets, the firm is considering setting up operations in China. One of factors that will impact the decision-making is the predicted sales volume in China in 2020. It is assumed that the growth in sales volume is 100% correlated with the GDP growth in China.
For Problem 2, predict the annual sales in China in 2020. Carefully read the grading criteria on the LP5.2/Problem 2 Assignment Rubric to ensure you understand how this problem will be graded.
Table 2: Estimated Sales in China in 2017
|
Market |
Annual Sales in 2017 |
|
China |
$7,920,000 |
Table 3: GDP Growth Rate Per Market (in percent)
|
Year |
China |
EU |
|
2005 |
11.4 |
1.9 |
|
2006 |
12.7 |
2.2 |
|
2007 |
14.2 |
1.6 |
|
2008 |
9.7 |
0.2 |
|
2009 |
9.4 |
-0.5 |
|
2010 |
10.6 |
1.7 |
|
2011 |
9.5 |
2.1 |
|
2012 |
7.9 |
-4.4 |
|
2013 |
7.8 |
0.4 |
|
2014 |
7.3 |
3.1 |
|
2015 |
6.9 |
3.3 |
|
2016 |
6.1 |
2.1 |
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