You are an economist for a U.S Manufacturer, who is considering expanding sales into Europe. Your market research has identiiied the market potential in France,
You are an economist for a U.S Manufacturer, who is considering expanding sales into Europe. Your market research has identiiied the market potential in France, Italy, and Spain as described next: Success Level France Italy Spain Probability Units Probability Units Probability Uhits Big 0.3 1,000,000 0 4- 900,000 0.6 700,000 Mediocre 0.3 600,000 0 4 700,000 0.3 300,000 Failure 04 0 0 2 0 0.3 0 The product sells for $12 and has unit costs at $10 If you can enter only one market. and the cost of entering the market [regardless of which market you select) is $300,000, should you enter one of these markets? If so. which one? If you enter, what is your expected prot
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