Case Scenario:
The firm manufactures a global positioning system (GPS) that sells for $1,000 with cost of goods sold (hardware and software) of 48% of sales. Compared to the United States, China offers a 6% cost reduction in electronics manufacturing hardware and a 50% reduction in software programming.
Please answer the given questions after researching the questions for China
Question 1. What is China's Expected GDP Growth?
Question 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?
Question 3. What is the projected savings for the firm?
Question 4. What is the new cost of goods sold percentage of sales for this country?
Question 5. How can the firm arrange the business to be most profitable?
Question 6. Please cite all references.