Mr Jordan is considering moving the Chinese factory to South Korea. What are the risks that would be caused by relocating production?

Appendix Q3.1: Borrowing costs, exchange rates and expected appreciation of currencies

Initial investment (KRW)	160,000
Interest rate in UK (5-year loan)	8% per annum
Interest rate in South Korea (5-year loan)	16% per annum
Interest rate in France (5-year loan)	10% per annum
Spot exchange rate: KRW per GBP	1,600.00
Expected appreciation of GBP in relation to KRW	5% per annum
Spot exchange rate: EUR per GBP	1.20
Expected appreciation of GBP in relation to EUR	3% per annum