Answer question in on wrds, no plgrsm. Elaborate and answer fully

1. What are the implicationsif Terry invests in UA?

2. Should Terry invest in UA and why?

Terry Zupita is considering how to invest the modest amount of money she recently inherited ($48,000). Based on her knowledge of different types of investments, as well as the advice of friends, Terry thinks that she should invest her inheritance in a long-term U.S. Treasury bond that promises to pay her $3,250 interest every six months for 10 years. However, today at lunch, Terry asked her best friend Mike how he would invest the money. Mike responded he thought she could invest in something other than the T-bond and earn a much higher rate of return. In fact, he told Terry he was at a company social a few nights ago where he overheard a few people talking about a U.S. automobile manufacturer that is partnering with the Chinese government to open a manufacturing operation in Shanghai. The firm, named Universal Autos (UA), would have nearly exclusive rights to manufacture U.S. automobiles in China. One of the men involved in the conversation stated he thought the arrangement presented a huge opportunity for UA to substantially increase its profits during the next 10 years, which should translate into significant increases in the company's stock price. All the other people involved in the conversation agreed.

Intrigued, Terry thought it would be a good idea to investigate UA as a potential investment, so she sought advice from her friends and relatives. One friend advised against UA as an investment because she heard from another friend the company does not adhere to the same labor practices as companies in the United States. Although no proof has surfaced, rumors are that UA has used child labor and mistreated workers in some of its overseas manufacturing facilities. Another friend advised against the investment because workers have no union representation, like those who work for automobile manufacturers in other countries. And, Terry's uncle, who works in the U.S. State Department, said he had heard that UA made a huge payment, which he called a "bribe," to the Chinese government before the deal was signed. Her uncle thought the payment UA made to the government likely would be considered illegal in the United States. However, Terry's boyfriend, who happens to be Chinese, thinks she should invest her money in UA. According to information provided by his family and friends in China, the agreement between UA and China represents a historic business deal the Chinese government intends to fully support, which suggests there is little risk associated with the investment. In fact, according to her boyfriend, Terry's $48,000 could grow to $106,100 in 10 years if she invests it in UA.