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11) Use the export vs. horizontal FDI model to answer the following questions. (8 points) (a) In an export vs. horizontal FDI decision show graphically

11) Use the export vs. horizontal FDI model to answer the following questions. (8 points) (a) In an export vs. horizontal FDI decision show graphically and explain when a MNC would choose horizontal FDI. (b) Show using average cost graphs how the MNC's decision changes when trade cost decreases. 1

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