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2. Business Environment CASE STUDY (20 Marks) China has long dominated the world manufacturing sector by virtue of its low cost labour and China's state-owned enterprises (SOEs) have been the principal drivers of the industry by providing the essential raw material- dominating the capital-intensive sectors such as power, steel, chemicals, machinery, and providing employment. Post 1978, China has been making a concerted effort to transform its 'planned economy' into a 'socialist market economy' by restructuring its problem ridden state-owned enterprises and making them profitable global players.

3. Answer the following question. Q1. Discuss the problems faced by the state-owned enterprises in China Q2. Explain the importance of these institutions to the Chinese economy

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