Tim

Seriously? Wow, that is higher than I thought it would be$,$ but it still leaves us a little profit.

Costs $$2\mathrm{.}97$ is based on a production run of $1$ million units. If we made more, of course, the costs would come down a bit, but if we made less, then the costs would actually be quite a bit higher per unit.

Based on everything you've learned so far, which foreign entry method should we pursue?

Foreign direct investment, which would involve leasing a manufacturing facility in Shanghai, China, and making Dr$.$ Tasty ourselves there.

A licensing agreement with a current Chinese food manufacturer to make Dr$.$ Tasty in China and have them sell it for us$.$

Making Dr$.$ Tasty in Minnesota and exporting it to a food distributor in Shanghai, China.

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