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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


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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Several factors influence the managers decision on whether to use the same production technology in both the domestic and foreign plants 1 Cost Consid... blur-text-image

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