DFI Strategy. Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce stereos and

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DFI Strategy. Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce stereos and sell them there. It expects that its cost of producing these stereos will be one-third the cost of producing them in the United States. Assuming that its production cost estimates are accurate, is Bronco’s strategy sensible? Explain.

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