Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce stereos and sell them there. It expects that its cost of producing these stereos 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?

1.Discuss the benefits of Foreign direct investment for Bronco Corp.

2.Host government views on Bronco Corp.

3.Recommendations whether Bronco Corp. strategy is sensible or not.