Read the case study below and answer ALL the questions that follow. Apples Apology in China SHANGHAI Apples chief executive, Timothy D. Cook, took the unusual step Monday of apologizing to Chinese customers over the companys warranty policy and said he would improve customer service in the country. Apples apology Monday was the latest twist in a strange spectacle that has unfolded in recent weeks in China over Apples warranty policies and underscored the challenges the company is facing as the country becomes an important market for its products. Apples problem began on International Consumers Day, when Chinas biggest state-run television network, as is its tradition, broadcast an investigative report on how companies operating in China cheat or mistreat consumers. This year, on March 15, one of the targets was Apple. China Central Television criticized the American companys after-sales iPhone customer service in China because it gave only a one-year warranty, while in China the law is two years. It also said that phone owners had to pay about $90 to replace a faulty back cover. Apple did not immediately respond to some of the accusations, but other state media outlets stepped up their criticism over the next two weeks, raising the stakes for Apple in China, which is now the companys second-biggest market after the United States. Soon after the segment was broadcast, several Chinese celebrities piled on, posting harsh comments on Weibo, Chinas Twitter-like service. Then Peoples Daily, the official mouthpiece of the Communist Party, published a series of editorials and articles, including one paper titled Defeat Apples Incomparable Arrogance. Other state organs also joined the fray. Chinas State Administration of Industry and Commerce, which has oversight of business practices in China, called for strengthened supervision of Apple. And in recent days, television news broadcasts have included images of Chinese journalists being turned away from Apples offices in China. Apple, based in Cupertino, Calif., issued a statement in Chinese Monday. We realize that a lack of communication in this process has led the outside to believe that Apple is arrogant and doesnt care or value consumers feedback, Mr. Cook wrote in the open letter. We sincerely apologize for any concern or misunderstanding this has brought to the customers. QUESTION 1 (20 Marks) Discuss in the context of the above case the social factors which influences business dealings in an International Business setting with your own examples.