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QUESTION 1 (20 MARKS) a. UrbanaaClarke Corporation is a labor intensive manufacturing company that specializes in electric cars. These vehicles are being produced and sold
QUESTION 1 (20 MARKS) a. UrbanaaClarke Corporation is a labor intensive manufacturing company that specializes in electric cars. These vehicles are being produced and sold in the United States. Their production is_considered efficient, less costly and pays lower wages as to their competitors. However, local workers are loyal to the company as they have promised by the company a guaranteed post for 20 years. Urbana-Clarke is considering opening a subsidiary at a neighboring country in the South to produce parts as resources are less costly. The hired consultant suggested that expansion is necessary. Required: i. State your opinion as to why Urbana-Clarke should pursue based on the THREE [3) Theories. (9 marks) ii. Should Urbana-Clarke Corporation be worried about risks regarding politic and exchange rate
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