2. You are the head of a US corporation that produces a patented product which you wish to sel 1 in Australia. You have two options: Produce in the US and export, or set up a plant in Aus tralia to serve that market. The demand for this product is given by the demand curve P = 10 - Q, where P is the price in dollars and Q is the quantit y sold in Australia. The marginal production cost is $2 per unit, whether you produce in the US or in Australia, but if you produce in the US and export, transport costs add an extra $2 per unit to marginal cost. The fixed cost of setting up and mai ntaining a plant in Australia is $8. A) Which is the profit-maximizing strategy, export or FDI? B) If the transport cost goes up to $5, and you are allowed to change the corporate strategy if you wish, will the price in Australia go up or down? Why?