A large US based bottling company is considering an investment in a manufacturing facility in one of two low cost countries: Philippines and China. The following applies:

	Philippines	China
Investment price	2400 million pesos	665 million RMB
Cost per Bottle	20 pesos	3.5 RMB
Projected Annual Cost Savings	600 million pesos	140 million RMB
Additional Investment of Imported Equipment	25 million US$	25 million US$
Exchange Rate	Pesos 40 / US$	RMB 7/US$

If RBM depreciates 20% against US$, which country now has a comparative cost advantage per bottle produced?

		Philippines
		Both the same
		China
		None of above