In order to be competitive in local markets, the firm is consideringsetting upoperations in China. One of
Question:
In order to be competitive in local markets, the firm is consideringsetting upoperations in China. One of factors that will impact the decision-making is the predicted sales volume in China in 2020. It is assumed that the growth in sales volumeis100% correlated with the GDP growth in China.
For Problem 2,predict theannual sales in China in 2020.Carefully read the grading criteria on the LP5.2/Problem 2Assignment Rubric to ensure you understand how this problem will be graded.
Table 2: Estimated Sales in China in 2017
| Market | Annual Sales in 2017 |
| China | $7,920,000 |
Table 3: GDP Growth Rate Per Market (in percent)
| Year | China | EU |
| 2005 | 11.4 | 1.9 |
| 2006 | 12.7 | 2.2 |
| 2007 | 14.2 | 1.6 |
| 2008 | 9.7 | 0.2 |
| 2009 | 9.4 | -0.5 |
| 2010 | 10.6 | 1.7 |
| 2011 | 9.5 | 2.1 |
| 2012 | 7.9 | -4.4 |
| 2013 | 7.8 | 0.4 |
| 2014 | 7.3 | 3.1 |
| 2015 | 6.9 | 3.3 |
| 2016 | 6.1 | 2.1 |
Expert Answer:
To predict the annual sales in china in 2010 It is important to first find the trend line of the gro... View the full answer
