An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial products. A manufacturing plant costs about $500 million to construct and requires a highly skilled workforce. The total value of the world market for this product over the next 10 years is between $10 and $15 billion. The tariffs prevailing in this industry are currently low.

1.Should the firm adopt a concentration or decentralized manufacturing strategy?

2.What kind of location(s) should the firm favor for its plant(s)?

(BUS5 187 , please don't copy internet)

(Discuss your reasoning for both 1 and 2.)