Evaluation of the Existence and Quantification of Chinese Location Specific Advantages

The Situation

NERA was retained in various occasions by multinational companies operating in China to evaluate the existence of Chinese location specific advantages and, if any, quantify them.

The Result

The evaluation relied on financial analyses of the cost structure of the Chinese operations as compared to the cost structure of other subsidiaries of the group in other jurisdictions. The study also involved econometric analyses relying on group- and industry-specific data as well as macroeconomic data.