International Economics

5. A former graduate of the MGM program at Royal Roads University (RRU) has recently invented a Solar Powered Laptop made from polycarbonate. This laptop represents a large step towards future "green" electronics. It has comparable performance and battery life to a standard laptop but is a bit more expensive and currently does not meet the needs of specialized people that need extreme computing power, such as scientists. At this stage, she is trying to decide where to locate elements of her business. She needs to choose where she will conduct research and development (R&D), where manufacturing will take place, and where she should concentrate her marketing (where she is likely to sell the most green laptops). As an international economics expert, she has asked for your guidance. a. (4) Using your knowledge of industrial clusters and external economies of scale, please suggest where she should locate her R&D, where she should locate her manufacturing, and why. b. (4) Please recommend to her a market that she should focus on for sales of her laptop and why. Also explain if she will face competition in that market due to intra-industry trade. What explains that intra-industry trade? International Economics