An electronics firm is considering how best to supply the world market for microprocessors used in consumer and industrial electronic products.

A manufacturing plant costs $1 billion to construct and requires a highly skilled workforce. The total value of the world market for this product over the next 5 years is estimated to be between $10 and $15 billion. The tariffs prevailing in this industry are currently low.

A. What kind of manufacturing strategy should the firm adopt - concentrated or decentralised?

B. What kind of location(s) should the firm favour? (Consider the 3 factors)