There are THREE (3) questions in this section. Answer ALL questions in the answer booklet. Question 1 Rhythm \& Hues Studios recently made headlines in Malaysia as its Cyberjaya branch was mentioned in the director of Life of Pi, Ang Lee's speech in the Academy Award when the film won the award for best visual effects. Rhythm \& Hues is a visual effect company based in El Segundo, California and has production facilities in India, Canada, Tawan, and Malaysia. At the international level, the company is known for having its own patented visual effect software and for taking over one of 20 Century Fox's subsidiaries in year 1999 . Apart from the awardwinning life of PI, the company has also worked on other well-known movies including Babe, Snow White and the Huntsman and X-Men: First class. Despite its achiewements the company has filed for bankruptcy and sale of the company, however, did not seem to affect the company"s internationaloperation much. The followingquestion are related to the company; a) Discuss TWO(2) possible reasons for Rhythm \& Hues to locate its production facilities in the four countries mentioned above. (5 marks) b) Briefly discuss the pressure for cost reduction for Rhythmand Hues and rationalize why Rhythm \& Hues uses wholly owned subsidiary as its foreign market entry in the four countries. (5 marks) c) Discuss FOUR (4) elements of Porter's Diamond on why USA-based companies and studios are internationally competitive in the visual effect movie-making industry in general. (10 marks) (Total: 20 marks)