Suppose a company in the United States was trying to decide whether to locate their manufacturing facility in the United States or in south
Suppose a company in the United States was trying to decide whether to locate their manufacturing facility in the United States or in Southeast Asia. Consider the following information in answering the question below:
• Presently, this US company, which makes only one type of finish good, sells 40% of their product in the United States, 10% of the product in Mexico, 15% of their product in Canada, and 35% of their product to the rest of the world.
• The product this company produces is presently tariffed heavily when imported into the United States.
• The product consists of about 150 components of which 75 components are imported from Southeast Asia. 40 components are imported from Mexico, and 35 components come from US suppliers, list and explain five reasons why it would be favorable to locate the mew manufacturing facility in the United States rather than in Southeast Asia.