86566
AS PLC Section 2
- 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
- The UK is a member of the EU and the owners of AS
PLC believe that this may bring some benefits to the
company.
- Many UK firms also complain that China has
fixed its exchange rate too low.
- 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.
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