Economist Lester Thurow once posed the following question: "If you were the president of your own country and could choose one of two industries in which to specialize, computer chips or potato chips, which would you choose?" When faced with this question, many people choose potato chips, because IIeverybody can use potato chips, but not everybody can use computer chips." But the answer is much more complex. Whether to choose computer chips or potato chips depends on such factors as the relationship between national wealth and the amount of value added in manufacturing products, the possibility that the country can benefit from monopoly power (few countries can make computer chips), and the likelihood of spin-off industries (computer chip technology gives rise to other technologies, such as computers). Required: In light of these and other possible considerations, which would you choose: computer chips or potato chips? Justify your answer. Suppose you get a job at Aoki Corporation, a firm that manufactures glass for industrial and consumer markets. Aoki is a large firm but has little international experience. Senior managers are considering a plan to move Aoki's manufacturing to China, Mexico, or Eastern Europe and to begin selling its glass in Latin America and Europe. However, they know little about the country risks that Aoki may encounter. Describe how each of the following factors might contribute to country risk as Aoki ventures abroad: foreign investment laws, controls on operating forms and practices, and laws regarding repatriation of income, environment, and contracts Required: Describe how each of the following factors might contribute to country risk as Aoki ventures abroad: foreign investment laws, controls on operating forms and practices, and laws regarding repatriation of income, environment, and contracts E173 Governments intervene in trade and investment to achieve political, social, or economic objectives. They often create trade barriers that benefit specific interest groups, such as domestic firms, industries, and labor unions. A key rationale is to create jobs by protecting industries from foreign competition. Governments may also intervene to support home-grown industries or firms. In various ways, government intervention alters the competitive position of companies and industries and the status of citizens. Required: "hint ning-Ann] In. nlllnll'AnI-l'nn Ens: n'nnnrnm inguinal-winn- n. lrnnnnn nnlu"