If it manufactures at home, a firm faces input prices for labor and capital of and

Question:

If it manufactures at home, a firm faces input prices for labor and capital of and and produces units of output using L^ units of labor and K^ units of capital. Abroad, the wage and are half as much as at home. If the firm manufactures abroad, will it change the amount of labor and capital it uses to produce ? What happens to its cost of producing ?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...