9 FDI strategy. Luigi SpA (an Italian company) has decided to establish a subsidiary in Taiwan that...

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9 FDI strategy. Luigi SpA (an Italian company) has decided to establish a subsidiary in Taiwan that will produce stereos and sell them there. It expects that the cost of producing these stereos will be one-third the cost of producing them in Italy. Assuming that its production cost estimates are accurate, is Luigiā€™s strategy sensible? Explain.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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