An article in the Wall Street Journal in early 2023 discussed Tesla’s decision to cut the prices of the electric vehicles it sells in China. According to the article, “The company said it is responding to the Chinese government’s calls to boost the economy and encourage consumption.” Because the vehicles Tesla sells in China are produced in the firm’s Shanghai factory, its business decisions in China can be affected by the policies of the Chinese government. Why doesn’t Tesla avoid this problem by producing in the United States the vehicles it sells in China?