CHINA:

A) i- Tariffs – Tariffs raise the price of imported goods relative to domestic goods (goods
produced at home).
Government Subsidy – Subsidies make those goods cheaper to produce than in
foreign markets.
Embargo - a blockade or political agreement that limits a foreign country's ability to
export or import.
ii- The world trade organisations want to lower or remove these restrictions is
because tariffs may encourage inefficiency, if an economy protects its domestic
industry by increasing tariffs industries may not have any incentives to cut costs.
 Another reason may be that there is an increased rate of competition, with more
trade, domestic firms will face more competition from abroad. Therefore, there will
be more incentives to cut costs and increase efficiency. It may prevent domestic
monopolies from charging too high prices.

B) Globalization is the process by which businesses or other organizations develop

international influence or start operating on an international scale. With china's
"GDP" growth by 9.7% per year and the availability of all the modern infrastructure
including the internet, mobile operators, media channels, universities etc... And the
huge human resources availability at very low cost (50 cents per hour vs. $6 per hour
in the US) china is the world target place for most ICT manufacturers from around
the world, companies such as Dell, Siemens, Acer, Sony and Hitachi are among many
other major ICT manufacturers utilizing the chines resources. This gives ICT
manufacturers huge research and development (R&D) budget that they can spend
on the development of the new ICT.

C) Political: An political advantage would be that, China being a bureaucracy, meaning a

system of government in which most of the important decisions are taken by state
officials rather than by elected representatives. Making sure most decisions are
taken in the sole interest of the country. China is also a member of the World Trade
Organization.

Economic: A economic advantage would be that China is a centrally planned

economy. They have also achieved 70% of the tariff cuts. Although on the other
hand, some agricultural tariffs have risen and new rules such as health and safety
requirements, discriminate against foreign firms.

Social: China has a large population which means there will be a large consumer
base. Most of the population are millennials.

Technological: China has a large internet consumer basis and most companies use
modern machinery. Which means that if your firm is not as advanced It is likely to
fail.
 6. a)
Improved 20%
4.6m

Expansion into the

European Union
Unchanged 50%
2m 2.4m

Worsened 30%
1m

Improved 20%

Expansion into the

USA
Unchanged 50%
DECSION 1.75m

Worsened 30%

Improved 20%

Expansion into a
different region in
China Unchanged 50%
0.5m

Worsened 30%

With no changes to Improved 20%

its product
portfolio Unchanged 50%

Worsened 30%

Improved 20%
With improved
product range
Unchanged 50%
Worsened 30%
b)

c) The advantages of using a decision tree include: it makes you consider the
consequences; they force you to consider as many possible outcomes of a decision
as you can think of. It can be dangerous to make spur-of-the-moment decisions
without considering the range of consequences. A decision tree can help you weigh
the likely consequences of one decision against another. Another advantage is: their
complexity, Decision trees are relatively easy to understand when there are few
decisions and outcomes included in the tree.

The disadvantages of using a decision tree include: your expectations, subsequent

decisions and payoffs may be based primarily on expectations. When actual
decisions are made, the payoffs and resulting decisions may not be the same as
those you've planned for. It may be impossible to plan for all contingencies that can
arise as a result of a decision. Another disadvantage is external factors, your decision
may be affected by external factors that you do not take into account when creating
a decision tree.

d)