Question: A decision maker wants to choose between two plans ( A and B ) and has constructed the following decision tree ( where S and
A decision maker wants to choose between two plans A and B and has constructed the following decision tree where S and S represent two different states of nature
Plan A is to make the product in a lowcost country of the world and Plan B is to make the product domestically, however, some partscomponents would still be imported.
There are two states of nature, S where there are no new tariffs on products imported from the lowcost country, and S where significant additional new tariffs are enforced on products manufactured in the lowcost region and then imported to the US
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