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Transcription of this question: 4.Chilean WineThe winery Vino Tinto plc. a Chilean firm established in 1920, has grown to become the largest andmost successful winery in its country. They have a very high market share in Chile and are consideringinternational expansion. TO finance this international expansion Vino Tinto plc needs an investmentof $500 000 to build further production facilities. They could borrow from a large commercial bankbut the owners are concerned about the current gearing ratio Of the firm.The owners are considering one of two possible options. The first option is to grow by exporting theadditional production to Other countries in Latin America. This would enable them to benefit fromChile’s associate membership Ofthe regional economic bloc Mercosur. The second option is to enterthe Chinese market, with its enormous growth potential. The local board Of commerce has advisedthem that they must form a joint venture if they want to pursue the idea Of exporting to China.(b)(c)(i) Define the term gearing ratio(ii) Describe two finance options that Vino Tinto plc can use to finance theinvestment Other than a bank loan.Explain three possible difficulties Of international marketing for Vino Tinto plc.Evaluate the two options being considered by Vino Tinto plc.[2 marks][4 marks][6 marks][8 marks]

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