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Suppose that Goodwin Co., a U.S.-based MNC, observes that the value of the peso is low relative to the U.S. dollar. Goodwin decides to open

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Suppose that Goodwin Co., a U.S.-based MNC, observes that the value of the peso is low relative to the U.S. dollar. Goodwin decides to open a factory in Mexico to take advantage of this currency movement. Which of the following cost-related motives best explains this direct foreign investment (DFI)? O attract new sources of demand O exploit monopolistic advantages O react to exchange rate movements use foreign raw materials

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