Step 1.Examine the case study, "Ecommerce at Yunnan Lucky Air". http://web.archive.org/web/20200715073533/https:/mitsloan.mit.edu/LearningEdge/CaseDocs/08-076%20Ecommerce%20at%20Yunnan%20Lucky%20Air%20-%20Lehrich.pdf

Step 2. Help with the following prompts based on the information in the case study.

Question 1: The Chinese government spent USD $20 billion on upgrading and opening new airports. What effect does this kind of policy initially have on GDP and unemployment?

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Question 2: What additional effects to GDP may occur in the years following the investment in airport infrastructure?

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Question 3: The Central Bank of China's main policy goal is to maintain the stability of the country's currency. What benefits might a stable currency have to Lucky Air as it expands internationally?

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Question 4: Suppose that inflation started to take hold in the Chinese economy. What affect would that have on Lucky Air's costs and ticket prices?

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Question 5: Since the case study was written, Lucky Air has flights to 11 foreign countries. In your opinion, do you believe Lucky Air has been a successful firm? Why or why not?

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