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A US. manufacturer is approached by the government of a developing economy to establish operations through foreign direct investment. If the rm accepts this opportunity,

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A US. manufacturer is approached by the government of a developing economy to establish operations through foreign direct investment. If the rm accepts this opportunity, the cost to establish a new facility. hire and train employees, and oversee the market development will be signicant in the short term. In the long term, this investment could position the rm at the center of a major distribution hub that could reduce its time to market. Which factor should the rm consider when deciding to accept this agreement? 0 lnsource to reduce transaction costs. 0 Minimum efcient scale of production. 0 Structural risk with U5. suppliers. 0 Outsource to another market

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