Economical: Economical factors constitute economic growth rates, interest rates, exchange rates, inflation rate, wage rates, working hours, unemployment rates, finance availability, purchasing power parity etc.( Angus,2007) China is fastest growing economy in the world and its shares benefits with companies working in its prominence. (PESTLE,2007) Regarding wage rate labor in Japan is much more expensive than China. In industries like electronics, labor contributes in good amount in cost. Also production cost is higher in Japan than China. Unlike Japan, China offers many incentives to companies manufacturing in the country. These incentives can help Elecdyne in reducing cost and sell product at more competitive price.