"Case studies YEAR3. Demand conditions:The rising demand conditions in the United States especially from the buyers of the Logitech'sproduct and service resulted in the need to set up a plant in Taiwan where in the factor costs arelow but the production is high. Thus rising demand of Logitech product and services by demandrise in demand created by Apple, IBM and other customers of the United States resulted inopting for the set up in Taiwan which later proved to be the best option.4. Firm strategy, structure and rivalry:The Logitech's strategy of improving its design and technology and along with that increase inoutput level to meet the demand of the customers led to the taking of decision of manufacturingin Taiwan.5. Supporting industry:The Supporting industry in Taiwan which supports the technological upgrades and brings aheadhigh skilled output resulted in attracted Logitech towards making investment in Taiwan. Thisway the supporting industry that supplied the required technology, skill, expertise and rawmaterial for the Company became the principle factors for set up of company manufacturing unitin Taiwan.6. Chance:13 Case studies YEARThe events and happenings around Logitech like increasing pressure of customers to increaseproduction and demand of customers to introduce new designs all led to towards the relying ofthe Company towards its output unit in Taiwan.Answer 6: China is now a favored location for so much high technology manufacturing activity because ofthe following reasons.1. The country has high skilled labor.2. The factor costs are considerably low.3. The government policy is supportive towards the FDI or Foreign Direct Investment.4. Improved technological upgrades achieved by the country.5. Cheap labor inputs available in the country.Thus the China’s increasing involvement in global trade help that country in the following way.1. The Country will be able to recruit highly skilled and technologically upgraded individuals forthe job from China.2. The availability of high level technological inputs and required raw material will help itscompanies to continue business without any problem.14 Case studies YEAR3. Ease of government norms in China will help in increasing trade ties between the twocountries. Hence more business opportunities will rise.4. More professional outlook of China will develop and help the other Country to get desiredoutput.This way China's increasing involvement will help the world’s developed economies in thefollowing ways.1. Production at low cost thereby decreasing the prices of the commodites and productsmanufactured in China. Thus inflationary effects can be checked.2. Production at high level output would help in fulfilling the requirements of the variousbusinesses around the globe. This way supply side will remain positive.3. Ease of availability of variety of products and services will further help in avoiding anychances of stockings that lead to uncommon price hike.The various potential problems are associated with moving work to China includes thefollowings.1. Low cost output will affect the domestic industry.2. High scale output will result in excess in supply and further affects its price.3. Quality output is mostly compromised when an import is made from China. 15 Case studies YEARBibliographyBarber, T., 2007. The Lisbon Reform Treaty. IT.com.Economist, T., 2004. Time for Europhoria? The Economist, pp.78-80.Esterl, M., 2005. Free Trade Area of the Americas Stalls. The Economist, p.1.Hill, C.W.L. & Gareth, R.J., 2012. Strategic Management Theory: An Integrated Approach (10th edition).Cengage Learning.Morgan, E.J., 2001. A Decade of EC Merger Control. International Journal of Economics and Business,pp.451-73.Porter, M.E., 2008. The Five Competitive Forces That Shape Strategy. Harvard business Review.Porter, M.E., November –December 1996. What is Strategy? Harvard Business Review.Posen, A.S., The Brookings Institution. Fleeting Equality: The Relative Size of the EU and US Economies in2020. 2004.Times, T.F., 1993. What is NAFTA? Financial Times, pp.30-31.16 "