Suppose you get a job at MobileTV, a small manufacturer of TV sets installed in cars and boats. Business has declined recently, foreign rivals from emerging markets are increasing competition, and management is worried. Because MobileTV does all its manufacturing in Britain and Canada, it lacks cost advantages and its prices are relatively high. After studying the problem, you conclude MobileTV should move much of its production to Mexico. But top management knows little about FDI. Prepare a report to management detailing the advantages of establishing a production base in Mexico. Why should the firm be interested in foreign manufacturing? Finally, recommend which type of FDI MobileTV should use in Mexico.