Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce MP3 players and sell them there. It expects that its cost of producing these MP3 players will be one-third the cost of producing them in the United States. Assuming that its production cost estimates are accurate, Is Bronco's strategy sensible? Explain. 1. Yes, because the cost of producing MP3 players in Taiwan will be much lower than if producing them in the United States, so Bronco would have an advantage in the Talwan market. II. No, because all of Bronco's competition in the Taiwan market will have the same production costs as Bronco's Talwan subsidiary, so Bronco would not have an advantage in the Taiwan market. III. No, because Bronco Corp. will need to sell MP3 players at a lower price compared to its Taiwan competitors as well as pay higher wages to attract workers. -Select- 1 II The treasurer of Glencoe, Inc., detected a forecast bias when using the 30-day forward rate of the euro to forecast O future spot rates of the euro over various periods. He believes he can use this information to determine whether imports ordered every week should be hedged (payment is made 30 days after each order). Glencoe's president says that in the long run the forward rate is unbiased and that the treasurer should not waste time trying to "beat the forward rate" but should just hedge all orders. Who is correct if the bias continues after being detected? -Select- is correct if the bias continues beyond the point at which it is detected. Glencoe's president The Treasurer Explain the micro-assessment of country risk. A micro-assessment of country risk assesses -Select- Country risk. Ek assesse -Select- risk factors as related to the firm's particular projects the overall risk of a country