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Use the domestic vs. vertical FDI model and the average cost graphs below to answer the following questions. (a) When would a MNC choose vertical

Use the domestic vs. vertical FDI model and the average cost graphs below to answer the following questions. (a) When would a MNC choose vertical FDI over domestic production? Explain. (b) How would your answer to (a) change if trade cost (t) increased? Explain. F Cd Cv +t ACv ACD

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