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A manager of a semiconductor manufacturing firm, who can choose from many different production technologies, must determine whether to use the same technology in its
A manager of a semiconductor manufacturing firm, who can choose from many different production technologies, must determine whether to use the same technology in its foreign plant that it uses in its domestic plant.
What are the factors that affect the manager's decision?
How will this decision change if the firm's cost of labor relative to capital is lower abroad than in the domestic market?
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