A U.S. manufacturer is approached by the government of a developing economy to establish operations through foreign direct investment. If the firm accepts this opportunity, the cost to establish a new facility, hire and train employees, and oversee the market development will be significant in the short term. In the long term, this investment could position the firm at the center of a major distribution hub that could reduce its time to market. Which factor should the firm consider when deciding to accept this agreement? O Insource to reduce transaction costs. O Minimum efficient scale of production. Structural risk with U.S. suppliers. O Outsource to another market.