AS PLC Section 2

AS PLC Section 2

1. The difference in price of the cars between the UK and other EU countries as compared to China is mainly caused by the tariffs on imports and the taxes on cars by engine size which are imposed by the Chinese government

2. The UK is a member of the EU and the owners of AS PLC believe that this may bring some benefits to the company.

3. Many UK firms also complain that China has fixed its exchange rate too low.

4. In 2011 some UK business people thought that the exchange rate against the pound should be £1= 5 Yuan rather than a rate of £1 = 10 Yuan.