Reference no: EM131180658
SITUATION
Bill Moss and several other small business owners joined a trade mission to China to explore market op-portunities there. The group learned that China has a population of 1.3 billion and is the third-fastest-growing export market for small and medium-sized U.S. firms.
Average annual income for farmers in China is approximately $413 per person; typical urban income is about $1,322. with an average of $3,442 a year in more prosperous cities like Shanghai.
In any given year, the Chinese software market grows by 30 percent and the number of Internet users quadruples.
Furthermore, the demand for management consulting services is in-creasing, especially information technology consulting. Members of the group were surprised by the number of people who had cell phones and regularly surfed the Internet, especially in large urban centers such as Beijing. Shanghai, and Guangzhou.
On the downside, they found that counterfeit goods (from clothing and leather goods to software and CDs) were readily available at a fraction of the cost of legitimate merchandise and that local mer-chants expressed an interest in doing business only with vendors with whom they had established relationships.
htffi://xww.busInessweek.comfglobalblz/contentifeb2007/ 020070216 056285.htm. accessed February 21. 2007.
QUSTIONS
1. What types of businesses would prosper in China? Why?
2 .What are the challenges and risks associ-ated with doing business in China?
3. What steps should Moss take to address these challenges and risks in order to increase his chance of success in the market?
What is the mean and variance
: Based on this information which probability model would be a good candidate for the number of drive up customers per day? What is the mean and variance of this model?
|
How much is your options investment worth
: Calls Puts Strike Close Price Expiration Vol. Last Vol. Last Hendreeks 103 100 Feb 72 5.20 50 2.40 103 100 Mar 41 8.40 29 4.90 103 100 Apr 16 10.68 10 6.60 103 100 Jul 8 14.30 2 10.10 Suppose you buy 35 February 100 call option contracts. How much is..
|
What forms of assistance are available to small global firms
: What forms of assistance are available to small global firms? - Which is likely to be of greatest benefit to small companies? Why?
|
What about the worst-case scenario
: Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price 5 $ 1,400 per unit; variable costs 5 $ 220 per unit; fixed costs 5 $ 3.9 million; quantity 5 85,000 units. What values should the company use for the four ..
|
What types of businesses would prosper in china
: What types of businesses would prosper in China? Why? - What are the challenges and risks associ-ated with doing business in China?
|
Two hospitals report their annual projected revenue
: Two hospitals report their annual projected revenue for five years to the local newspaper for a story on the area’s future economic outlook. However, Hospital 1 has applied a cumulative inflation factor of 5% per year while Hospital 2 has not applied..
|
Investment in the stock versus the option
: Stock in Cheezy-Poofs Manufacturing is currently priced at $90 per share. A call option with a $90 strike and 90 days to maturity is quoted at $3.60. Compare the percentage gains and losses from a $32,400 investment in the stock versus the option in ..
|
Explanatory variable and an intercept
: How do you derive the OLS estimator for a regression model with one explanatory variable and an intercept?
|
Journal entries used to commit financial statement fraud
: Which of the following is false concerning "topside" journal entries used to commit financial statement fraud?
|