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Micro and Macro economics

1.Describe the changing economic variables in China that influenced McDonald's expansion strategies.

2. What market model best describes the relationship between McDonalds and KFC in China? Explain.

3.What factors led to the Mexican currency crisis and peso-devaluation in 1994?

4. Was Wal-Mart able to use the same strategies in Mexico as it did in the United States? Why or Why not.

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Micro and Macro economics

1.Describe the changing economic variables in China that influenced McDonald's expansion strategies.
The changing economic variables in China that influence McDonald's expansion strategies are the high rate of inflation in China. The inflation rate has reached 5.1% last month and that is increasing the costs for McDonald's. The second economic factor that has influenced McDonald's expansion strategy in China is the high cost of rent in the large cities. This has compelled McDonald's to also expand into less-developed cities. New outlets in the biggest cities will be drive-through outlets. One of the strongest reasons why McDonald's is eying to expand in China is that China has been able to average a growth rate of 10% for the last 30 years. Further, China has implemented economic reforms leading to a strong export sector. The personal income, and consumption has increased n China making it attractive for McDonald's.
2. What market model best describes the relationship between McDonald's and KFC in China? Explain.
The relationship ...

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