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Q: A manager of a semiconductor manufacturing firm, who can choose from many different production technologies, must determine whether to use the same technology in
Q: A manager of a semiconductor manufacturing firm, who can choose from many different production technologies, must determine whether to use the same technology in its foreign plant that it uses in its domestic plant.
- What are the factors that affect the manager's decision?
- How will this decision change if the firm's cost of labor relative to capital is lower abroad than in the domestic market?
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