The firm produces a global positioning system that sells for $1,000 with costs of goods sold of 48 percent of sales. Compared to the US, China offers a 6 percent cost reduction in electronics manufacturing hardware and a 50% reduction in software programming.
Please answer the following questions after researching the questions for China
1. What is China's Expected GDP Growth-
2. Based Forecasted Exchange Rates to the U.S. Dollar in 1 & 2 years, should the US$200 Million be paid immediately, hedged, or 50% per years 1 & 2? -
3. What is the projected savings for the firm? -
4. What is the new cost of goods sold percentage of sales for this country? -
5. How can the firm arrange the business to be most profitable? -
6. Please cite all references